Crypto security firm offers to recover ex-Ripple CTO’s bitcoin fortune

Unciphered says it can crack open IronKeys like Stefan Thomas’s, but the former Ripple exec isn’t on board yet.

article-image

99Art/Shutterstock, modified by Blockworks

share

Stefan Thomas, the former chief technology officer of Ripple, holds 7,002 bitcoins, currently valued at $244 million, in a hard drive he can no longer access because he misplaced the digital keys.

The programmer received these bitcoins in 2011 as payment for an educational video he created about bitcoin, only to lose the access code later that same year.

Crypto security specialists at Unciphered have now thrown Thomas a potential lifeline. 

The firm penned an open letter to him on Oct. 25, claiming they have the technical ability to outsmart Thomas’s “IronKey,” the encrypted USB device, and help him gain access to his bitcoin fortune.

Years ago, Thomas misplaced the paper containing his IronKey password, a device that permits only 10 attempts before permanently encrypting its contents. 

After fruitlessly trying eight of his go-to passwords, he’s down to his last two guesses. 

The drama gained attention in 2021, following a New York Times article detailing how the programmer had just two shots left to reclaim his crypto stash.

Unciphered has claimed it successfully recovered data from an IronKey similar to Thomas’s, also notably accomplishing this feat for digital culture publication Wired. 

They utilized a “secret cracking technique” over months, permitting them more than the standard 10 attempts, Wired reported.

Pooling their resources, the company’s founders reportedly assembled a team called Project Everest, comprising roughly 10 members, including staff and external advisors. 

Notably, several team members had previously sharpened their skills at the National Security Agency or similar high-profile government entities.

Unciphered is keeping its research methods and the specific technique used to bypass the IronKey’s guess limit under wraps, citing the potential risk associated with exposing such vulnerabilities. 

The firm says this secrecy is necessary since the outdated IronKey models they breached can’t be updated and might still hold sensitive data.

Thomas has so far declined Unciphered’s help, per Wired. 

Blockworks has reached out to the former Ripple chief technology officer for comment.

He is said to have already struck a deal with two other cracking teams — cybersecurity firm Naxo and independent researcher Chris Tarnovsky — promising them a reward for unlocking the drive. 

Yet, Naxo’s progress remains uncertain, and Tarnovsky is waiting for some payment from Thomas to continue.

Despite no success so far from the two parties, Thomas appears to be sticking to his original pact, giving the initial teams more leeway before seeking new aid.

“It’s possible that the current team could decide to subcontract Unciphered if they feel that’s the best option. We’ll have to wait and see,” Thomas told the outlet.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (1).jpg

Research

Jupiter has emerged as the undisputed liquidity backbone of Solana, commanding over 90% of spot DEX aggregation and 80% of perp trading volume. But behind the numbers lies a far more ambitious play: a cross-chain, vertically integrated super-app spanning swaps, synthetics, NFTs, memecoins, and launchpads. This report explores Jupiter’s rapid rise, the monetization upgrades reshaping its revenue profile, and the risks that could unwind its dominance, from token dilution to competition. With annualized revenues nearing $300M, the upside is undeniable, if it can navigate the turbulence.

article-image

Curve founder Michael Egorov is working on a new protocol designed to eliminate impermanent loss, rethink token emissions, and capture BTC-native yield

article-image

Mining outfits have gone bust in the wake of prior halvings. Not so this time around.

article-image

Zora’s announcement that its token is for “fun only” sparked a debate about the need for such tokens

article-image

In recent weeks, Helium has hit new all-time highs while passing major protocol milestones

article-image

Financial advisers in a January survey said equity ETFs were their top choice for gaining crypto exposure in 2025

article-image

“Why put a target out there that’s really speculative, not knowing exactly where this environment is going to go?” CarMax CEO Bill Nash said