Recently, there has been heated discussion in the media and public opinion about a USB flash drive seized by the anti-corruption agency from Ke Wenzhe’s home. Some people suspect that this is key evidence that Ke Wenzhe used cryptocurrency to conduct cash flow operations and collect bribes. This article will also introduce readers to cryptocurrency in detail. What are cold wallets and private keys. (Preliminary summary: Is it possible for Ke Wenzhe to collect "1,500" Bitcoins? Experts slap the famous speaker: except for one case, there is a high probability of spreading rumors) (Background supplement: Analyzing Ke Wenzhe's three major misunderstandings about potential "virtual money laundering", encryption lawyers emphasize : There is no evidence at the moment! ) Recently, the Jinghua City scandal has continued to expand, attracting great attention from the society. The former mayor of Taipei City, Ko Wenzhe, was also involved in the suspected use of cryptocurrency after a USB flash drive was seized from his home by the anti-corruption agency. There was a public outcry over the conduct of cash flow operations and bribery. Around this USB flash drive, some media and public opinion have speculated that the flash drive may store the private keys of cryptocurrency, or it may be a cold wallet related to cryptocurrency... Although these speculations are not unreasonable at present, for people who are not in the currency circle, Speaking, you may not understand what a cryptocurrency cold wallet and private key are, and may even have misunderstandings. Therefore, Dongzhu will provide readers with a detailed introduction to cold wallets and private keys below. What is a cryptocurrency cold wallet? Cryptocurrency cold wallet (cold wallet) is a common way to store cryptocurrency offline and is used to protect digital assets from hackers or other online threats. Cold wallets are usually not connected to the Internet, so they are more secure than online hot wallets. Common forms of cold wallets include hardware wallets, paper wallets and offline computer wallets. However, it is worth noting that the cold wallet does not contain money, but your private keys are stored in it, and your cryptocurrency is still recorded on the blockchain. Types of cold wallets? Cryptocurrency cold wallets are divided into different types according to the way they store assets. Common cold wallet types are: Hardware wallet: This is the most popular form of cold wallet, such as Ledger and Trezor. These devices are designed to store private keys and confirm transactions through physical buttons and screens. Paper wallet: A paper wallet generates the public key and private key and prints them on paper, and then keeps them properly.Although there is no risk of being hacked, assets cannot be recovered if lost or damaged. Offline computer wallet: Store the private key on a completely offline computer or USB device, which can avoid network attacks, but it is more troublesome to manage and use. Other cold wallets include voice wallets, etc., but they are relatively rare. All in all, the main purpose of cold wallets is to increase security, especially for investors who hold large amounts of cryptocurrencies for a long time. When using a cold wallet, it is important to ensure that the private key is properly kept, because once the private key is lost, the assets cannot be recovered. Extended reading: Complete analysis of cryptocurrency wallets》Principles of hot and cold wallets, custody differences, advantages and disadvantages of multi-signatures What is a private key? A private key is one of the most important security credentials in cryptocurrency. It is a unique password or key used to control and access crypto assets. Holding a private key is equivalent to having control of the corresponding cryptocurrency, so it must be kept highly confidential. The main functions and characteristics of private keys include: Generating public keys: Private keys are used to generate public keys, which in turn can generate addresses, which are public and used to receive cryptocurrency. However, the private key must always be kept secret as it controls these assets. Sign a transaction: When a user wants to send cryptocurrency, they need to sign the transaction with their private key so that the transaction can be verified and processed by the network. The signing process is the result of mathematical operations to ensure the legitimacy of the transaction and the security of the private key. Security: The private key is usually generated from a random number and is extremely difficult to crack. It is a string of considerable length, usually expressed in hexadecimal or other encoding methods. The lawyer clarified the misunderstanding about Ke Wenzhe's USB flash drive. In response to the USB flash drive seized from Ke Wenzhe's home, Lin Hongyu, an encryption lawyer who is familiar with the field of cryptocurrency, personally appeared on the Sanli News program to explain three possible operations related to cryptocurrency. and clarified some misunderstandings. USB flash drive is not a cryptocurrency itself. First of all, lawyer Lin Hongyu pointed out a common mistake, that is, the USB flash drive itself will not suddenly become a cryptocurrency such as USDT. The flash drive may store the private key of the cryptocurrency, and the private key uses the cryptocurrency. The only way.This private key is similar to the password of a bank account. Once the owner loses the private key, he also loses control of the cryptocurrency. The private key is usually stored in the form of a set of garbled characters or 12 English words (note: ), and this information may be stored in USB. In this case, if the USB flash drive contains an encrypted private key, then the data in the USB can be regarded as an "electromagnetic record". According to China's Criminal Procedure Law, it can be seized by the prosecutor and used as evidence. If the USB does contain the private key, the flow of cryptocurrency could be directly controlled. However, lawyer Lin Hongyu believes that the possibility of this situation is low. If there is a private key in the USB today, it means that the money flow in this case has been discovered. In fact, frankly speaking, there may not be a problem of non-guaranteed return. The openness and transparency of cold wallets and wallet addresses. Lawyer Lin Hongyu then pointed out that the second possibility is the "cold wallet" mentioned by the media. A cold wallet is a storage method for cryptocurrency. It is not connected to the Internet and has high security. , if a cold wallet exists, then the wallet will be accompanied by a wallet address, which can be used to track all financial flows. After knowing the wallet address of the cold wallet, you can retrieve all the financial flows of all cryptocurrencies. Cryptocurrency has a characteristic that all its transaction records must be open and transparent, recorded in the ledger, and there are some network participants around the world to back up these records. Lawyer Lin Hongyu calls on everyone to know clearly that one of the characteristics of cryptocurrency is that its transaction records are open and transparent. All transaction data will be recorded on the blockchain and backed up by global network participants. Therefore, if you have the address of the cold wallet , investigators can query related cryptocurrency cash flows based on this address to clarify the whereabouts of the funds. However, according to the latest clarification from the Taipei District Prosecutor’s Office, no cold wallet has been found in the relevant safe. Possibility of third-party exchanges or over-the-counter transactions Finally, the third possibility is to trade through a cryptocurrency exchange or over-the-counter dealer, which involves selling the cryptocurrency in hand to an exchange or over-the-counter trader However, lawyer Lin Hongyu said that in Ke Wenzhe's case, there is no evidence that any transaction related to this occurred. Based on the above three approaches, lawyer Lin Hongyu believes that the current evidence shows that the financial flow operations related to cryptocurrency in Ke Wenzhe’s case have not yet been definitively determined, and the investigation results still require further observation and analysis. Related reports: Internet rumors went viral that Taiwan exchange card withdrawals were caused by Ke Wenzhe, and the community criticized the god of virtual currency. What is the truth? Ke Wenzhe’s reason for depositing millions of dollars in an ATM? Encryption expert: Peggy Chen sells Bitcoin like OTC, but the logic is irrational. Vitalik criticizes the market for "smart wallets": Most are centralized and controlled, and users must be careful of malicious risks. What are cold wallets and private keys? Is Ke Wenzhe’s USB flash drive really a key piece of evidence for cryptocurrency financial operations? 〉This article was first published in DongZu BlockTempo "DongZu DongTen - the most influential blockchain news media".