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- 1 Ex-Coinbase CTO claims that Apple and Google could be forced to retrieve private crypto keys of users by bankrupt governments.
- 2 Imagining a scenario where holding Bitcoin would become a political issue.
Authorities in the U.S. and elsewhere could compel Apple, Google and others to retrieve users’ private keys, ex-Coinbase CTO. says Balaji Srinivasan, a crypto entrepreneur. He feels that a bankrupt government could try this tactic for funding.
Apple & Google Could Pose Systemic Risk to Crypto
El Salvador adopted Bitcoin as a legal tender on September 7, 2021; it was a move of paramount importance for the world. By the end of this or the next decade, the world’s most significant political issue could be Bitcoin and whether the bankrupt governments have enough BTCs to fund their operations.
Having enough Bitcoin in the government’s wallet might soon become a political issue. During such times, bankrupt governments could try to procure the crypto assets of their citizens.
However, a typical 51% attack on Bitcoin mining through mining would be a far-fetched situation for the United States. China could pull off the feat, but most mining facilities are outside China. The country might compel big tech firms like Apple and Google to hunt for private keys on their servers, devices and browsers operating under their control. These keys could then be used to steal money from the government.
If this becomes a reality, argues Srinivasan, it will not be a cybercrime any more but will enter the devastating realm of cyber war. The scenario would not be as simple as a hacker sneaking out a file or attacking a cross-chain bridge. It would be like a company’s CEO lawfully giving orders to hack its customers.
What will the sheep do if the shepherd turns out to be a butcher?
Srinivasan referred to a similar scenario when around 140 Million Russians who were designated enemies of the state had every tech company turning against these consumers in early 2022.
The possible tools for the attack would be millions of iPhones and Android phones, Mac laptops and desktops, iPads, and Browsers like Chrome, Safari etc. China could force manufacturers in the country to equip devices with such surveillance.
However, a probable solution and a mode of defence against such an attack are still under development.
In August 2021, Apple was criticized for its plans to introduce three child safety features in devices. The updates would have included a feature to detect CSAM images stored in iCloud photos. This Communication Safety option would have blurred the sexually explicit images in the Message app and other child exploitation resources.
Protestors argued that such a feature could create a “backdoor” in devices, which law enforcement and government agencies could have exploited for surveillance. Another concern was false positives, a possibility where anyone could intentionally add CSAM images on an individual’s iCloud account to get them flagged.
Things get tricky if an individual cannot even trust the operating system. Linux could be a solution, but it might not scale to be a viable solution in time. Exchanges built on Linux could be another option, but they would also be exposed to similar vulnerabilities and attacks as their counterparts.
Even though such a scenario might or might not occur, such claims make the community think nonetheless.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
