Crypto
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What had happened was

We talked to the man who claims Claude helped recover $400,000 worth of bitcoin locked in wallet for over a decade

“I was taking pictures of school notebooks and sent them to Claude, trying everything to piece anything together. I also said how I make passwords. I gave Claude context,” X user Cprkrn told us.

Yesterday was “the best day of my life” for anonymous X user “Cprkrn” who said Claude helped him recover five bitcoin stuck for 11 years in a Blockchain.com wallet, encrypted with a forgotten second password. He bought five bitcoin for about “between $200 and $300,” and it’s now worth roughly $400,000.

In an X thread that has now gone viral, Cprkrn shared a post from August 8, 2023, with blockchain data showing the wallet hadn’t had any transactions since April 2015. Arkham data shows the funds were sent to a hot wallet at Hyperunit yesterday. 

“Locked out 11+ years because I got stoned and changed the password,” he posted. 

Sherwood News could not independently verify he is the owner of the wallet, as Cprkrn didn’t want to send a bitcoin transaction as proof. The timing of his posts and the transactions on the blockchain do correspond with Cprkrn’s narrative.

And while Cprkrn said, “Claude cracked this shit,” online, it’s fair to say that Claude did not “crack” the bitcoin wallet per se, but helped him find the old wallet backup file on his computer. In other words, don’t worry about Q-day level threats to cryptography yet.

“It’s exactly it. I did write down things illegibly and messed up the order of some words, so it figured that piece out, and then yeah, the seedphrase decrypted an older wallet, so yeah, it sort of went through all my files and was looking for clues with me,” Cprkrn told Sherwood, adding that he used Claude Opus 4.7 for the endeavor.

Per the Claude recap, he also posted a breakdown of what worked: “The old wallet backup was decryptable with the old second password that we already knew from a notebook mnemonic. Decrypting the old backup with the old password gave us the same private keys controlling the current funds. Swept 5BTC out.”

Total passwords tested: around 3.5 trillion.

Cprkrn, who has been in the crypto space “since college,” said he didn’t use specific prompts but rather fed Claude a ton of information.  

“There is this like bitcoin recover I tried to use on my own, and then I kind of fed that into Claude so it had password recovery to lean off of and then I talked back and forth,” he said.

He added that he had old MacBooks, old hard drives, and some cloud data repository, “so yeah, I basically gave it my full history.”

“I was taking pictures of school notebooks and sent them to Claude, trying everything to piece anything together. I also said how I make passwords. I gave Claude context,” he told Sherwood.

A few weeks ago, he said Claude said it had figured it out (but in reality, it hadn’t), so yesterday he didn’t believe it actually did it this time.  

“And then I typed in the phrase and it fitted, and I didn’t expect that tweet to go viral,” he said.

He told Sherwood that years ago, he had written down the password on an old phone he lost at a bar.

“We were playing pool, and I had my phone on a table, and then while I was shooting my shot, my buddy was trying to see if anyone had lost their phone, and some stranger took mine before I turned around/noticed,” he said. “I could be misremembering, of course, it was so long ago, but we always joked that it was his fault for accidentally giving my phone away.”

Asked whether he is now scared of wrench attacks, he said, “That was my first thing, that’s why I want to maybe cash out, it’s definitely a worry.”

So what’s next?

Cprkrn said he’s been a bitcoin proponent but has been “slightly disillusioned” by the crypto industry in recent times. When asked whether he’ll buy more bitcoin, he said, “who knows?”

“I already work in the industry, so I have exposure in other ways. I’m kind of debating sitting tight, but I’m approaching the age where a house is appealing,” he said. “I think obviously it’s a good thing for us in the long haul, but I don’t know exactly, I need to play things smart.”

Asked whether plans for his impending wedding might change, he said: “We’ll get a couple extra flowers.”

 

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Crypto IPOs hit pause as “appetite has been sold to AI”

The rule of three means we can now declare 2026 will not be the year of crypto IPOs:

  • Ethereum development firm Consenys,

  • Security hardware company Ledger,

  • And crypto exchange Kraken are pausing plans to go public, according to reports from CoinDesk.

The companies have delayed their IPOs due to tough market conditions, the report said, including declined trading volume in digital assets, weak price performance of tokens, and investor interest in other sectors.

Kay Kyeongsik Woo, the founder of blockchain ride-hailing application Tada, told Sherwood News, “The market is cooled down and investors’ appetite has been sold to AI.”

Just today, AI chipmaker Cerebras Systems went public and is this year’s largest IPO so far, and investors are excited about potential IPOs for OpenAI and Anthropic as their valuations soar.

“It’s a fair decision on behalf of all the crypto firms,” according to Kairos Research cofounder Ian Unsworth. “For one thing, they will ultimately be dwarfed by some of the other massive IPOs coming up.”

Unsworth also pointed to how the CLARITY Act, if passed, could be a strong tailwind for these companies. “A better regulatory environment could make these companies more appealing to potential investors,” he said.

Consensys, Ledger, and Kraken did not confirm to Sherwood if they had put their IPO plans on hold. A Consensys spokesperson told Sherwood, “As a matter of policy, we do not comment on market speculation,” while a Ledger representative declined to comment on the story.

Meanwhile, Lauren Post, Kraken’s vice president of corporate communications, told Sherwood that the company did not put out any public statements on freezing IPO plans.

crypto

XRP tops 24-hour chart on South Korean crypto exchange

XRP is among South Korea’s favorite coins.

In the last 24 hours, XRP saw the highest trading volume on South Korean exchange Upbit at over $105.3 million, a figure exceeding bitcoin’s $102.6 million, ethereum’s $62.9 million, and dogecoin’s $27.7 million, data from CoinGecko shows.

Meanwhile, spot XRP ETFs saw $5.3 million worth of inflows on Tuesday, bringing monthly inflows to more than $65.3 million, according to SoSoValue.

The activity has not, however, translated into positive momentum for the token, with XRP remaining flat at the $1.43 level in the period.

Prediction market-implied odds of XRP rising above $1.50 in May (a level that hasn’t been surpassed in over two months) now stand at 70%, up from as low as 9% at the start of the week.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

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XRP returning to Upbit’s leadership position in trading volume follows the news earlier this week that Ripple’s prime brokerage unit secured a $200 million debt facility from global investment management firm Neuberger Berman to aid with the unit’s margin financing solutions.

Elsewhere, the XRP Ledger notched a new record of 332,000 addresses holding at least 10,000 tokens, worth $14,300, per data analytics platform Santiment. “Historically, rising numbers of mid-to-large wallets suggest increasing conviction from investors who are less focused on short-term price swings and more interested in long-term positioning,” Santiment posted Tuesday night on X.

“This is especially notable because XRP has spent much of 2026 trading below previous highs, meaning many holders appear willing to accumulate during fear rather than chase momentum,” Santiment added.

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XRP returning to Upbit’s leadership position in trading volume follows the news earlier this week that Ripple’s prime brokerage unit secured a $200 million debt facility from global investment management firm Neuberger Berman to aid with the unit’s margin financing solutions.

Elsewhere, the XRP Ledger notched a new record of 332,000 addresses holding at least 10,000 tokens, worth $14,300, per data analytics platform Santiment. “Historically, rising numbers of mid-to-large wallets suggest increasing conviction from investors who are less focused on short-term price swings and more interested in long-term positioning,” Santiment posted Tuesday night on X.

“This is especially notable because XRP has spent much of 2026 trading below previous highs, meaning many holders appear willing to accumulate during fear rather than chase momentum,” Santiment added.

$6.75B

Cryptocurrency theft has become a huge source of state revenue for North Korea.

Between 2016 and early 2026, threat actors linked to the Democratic Peoples Republic of Korea (DPRK) have stolen ~$6.75 billion across 263 documented incidents, security services provider CertiK estimated in a report published Tuesday morning.

The data likely falls short of the actual magnitude, as hundreds of smaller exploits against individuals and early-stage projects remain underreported.

DPRK actors have consistently targeted humans and supply chain weaknesses rather than smart contract code vulnerabilities, the report stated. Across nearly a decade of operations, their primary attack vector has rarely been code. It has almost always been people.

For example, North Koreas more than $270 million exploit on solana-based protocol Drift was six months in the making. It involved Drift contributors physically meeting in multiple industry conferences across several countries with people claiming to be part of a quantitative trading firm.

DPRK actors who siphoned $625 million from the Ronin network in 2022 also used a social element: an exploiter impersonated a job recruiter on LinkedIn and provided a fake offer to an employee at Sky Mavis, the firm backing Ronin, through a PDF infected with malicious spyware.

They are state employees executing a strategic mandate with the full backing of a nuclear-armed government. Their persistence, resources, and willingness to invest months in a single operation reflect institutional incentives that no criminal enterprise can match, the report added.

The fundamental challenge remains: North Korea has weaponized cryptocurrency theft as an essential revenue stream for regime survival. Until that incentive structure changes, the threat will persist and evolve.

Last month, the decentralized finance ecosystem saw 28 hacks, the highest monthly number of exploits ever, totaling $635.2 million, with the largest coming from ethereum-native protocol KelpDAO.

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