User cprkrn on X has recovered 5 BTC (approximately $400,000) thanks to the AI chatbot Claude identifying a bug in the recovery program. According to CryptoBriefing, cprkrn attempted over 3.5 trillion combinations using the open-source password recovery tool 'btcrecover' but was unable to access the wallet. The recovery took place on May 13-14. cprkrn had stored an encrypted wallet backup file on an old computer since December 2019 and entrusted Claude with this file and the code for the recovery tool. Claude reviewed the local files and code, discovering a logical flaw in btcrecover. The issue was with the way the shared key and password were combined, and once this bug was fixed, the combinations worked. While cprkrn claims to have attempted recovery for 11 years, the verified backup file dates back to December 2019, making the exact duration of the lock uncertain. This incident spread through X, Tom's Hardware, and the Bitcoin Foundation, with claims that Claude found the vulnerability in just eight minutes, although CryptoBriefing could not confirm this. This case illustrates that Bitcoin encryption was not breached, but rather that AI identified a code flaw, with an estimated 3 to 4 million Bitcoins permanently lost.
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