Quote from: PhoenixFire on February 06, 2018, 04:28:00 PM

Right, but TierNolan is saying that if one private key is exposed all private keys and addresses in that wallet can be found, not just that one - it only requires one private key and the data from a watch only wallet... both of which I imagine have been on an online machine. It needs to be a new/fresh Armory wallet, not just a new address in the same wallet.
This is important if you don't want to risk your coins.

Exactly.

~~The risk is low~~ but possible. The key point is that Armory generates private keys in a sequence. It uses the watch-only info and the previous private key to compute the next private key. Once you have 1 private key and the watch-only info, you can compute all the remaining private keys. (I am pretty sure earlier keys are safe)

An example would be if an altcoin was created that had a malware in the official wallet itself. You download the official wallet for the altcoin and install it.

It scans your computer for watch-only wallets and sends them to some server. It also sends any private keys that you import into the wallet. That allows the attacker to generate any later private keys.

[Edit]

Fair enough. The attacker needs the watching only wallet + 1 private key. If they can get the private key, then the watching only info could very easily be obtained too, since that is on the online computer.