John McAfee Bitfi Bitcoin wallet hacked a week after launch turned out to have n ...

Last week, John McAfee announced the launch of his unbreakable crypto-wallet Bitfi. He offered a $100,000 bounty to anyone who could hack a Bitfi, a physical device known as a “hardware wallet” that’s designed to securely store your cryptocurrency. McAfee boldly declared this device “unhackable” as did Bitfi CEO Daniel Khesin, and they dared anyone to try by upping the ante to $250,000.

However, IT security experts managed to hack Bitfi wallet with a week. Now a Dutch security researcher on Twitter claims he’s gained root (administrative) access to the device, and he and McAfee are having an argument over what qualifies as a hack. According to McAfee, root access doesn’t allow a hacker to modify data on the device, so it doesn’t count. In theory, a hardware wallet for Bitcoin is more secure than the default method, which is to write down your private key on a piece of paper.
Later, Bitfi stated that the hack attempt as being a coordinated effort bankrolled by Bitfi’s competition, citing “all of the nonsense claims instigated and co-coordinated by BirFi’s established, monolithic competitors in the hardware wallet space.”
The hacker, who goes by the name OverSoft, has not disclosed how he got root access, but he’s produced a video to prove that he’s accomplished the feat.
It’s not the end. IT security experts believe that Bitfi were not going to pay $250 thousand for the hacking at all.

It should be noted that OverSoft was able to hack the wallet without having physical access to it. He said that you basically don’t need Bitfi device because it doesn’t have any special security software. It could as well be available from Play Store as any other app. You don’t need to buy a $120 BitFi account that came preloaded with some cryptocurrency.
Other experts claim that Bitfi is simply cut down Mediatek MT6580 chip without any mobile phone functions. They have found standard MediaTek library and even spying software that gathered users’ information and transferred it to Baidu and Adups servers in China.