I see a lot of very complicated theories out there. Here is the response I left in another post:
The answer could be more simple than all these hacks theories. You are a PUBLIC, core developer working in Bitcoin for years, you obviously hold a bunch of BTC. In that case you are a target for professionals, not only in cyberspace, but also in the physical world.
His Twitter profile says a lot about him, where he lives, what he's doing. This happening during the holidays... Is it possible someone breaking in his house and find the seed written down? The Twitter profile says this guy is a devote catholic. You don't need to be Sherlock Holmes to try look for the seed "kept by God" inside a bible or behind a cross. Definitely easier than robing a bank.
If you hold $10M in BTC, you have 2 options: or nobody knows who you are, or you have your house secured at ScarFace level.
I'm probably wrong, but definitely a possibility.
Is it possible someone breaking in his house and find the seed written down?
AFAIK Luke uses Bitcoin Knots (fork of Bitcoin Core) as a wallet, it doesn't have seed phrases.
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Then looks like he Forked Off.
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It's the same with Bitcoin Core. Knots is just Core with bunch of patches applied on top of it.
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But for my very little understanding about it. Knots doesn't keep a tradicional seed where you have to write it down. Even if encrypted is online? And is not cold storage. 200 Bitcoin in a hot wallet, is that what we are doing here?
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Bitcoin Core also does not implement BIP39, Knots is not different here. Normally your wallet is encrypted using AES, you decrypt it temporary to sign transactions. But it is hot wallet, yes. If your wallet file is stolen and pasphrase is weak or your machine is hacked, you will have bad time.
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