Paradigm acquires Kryptos solution for nearly $1m, launches public challenge
The firm, led by a Coinbase co-founder, will manage submissions and offer prizes while maintaining the plaintext remains unviewed.
Paradigm, a venture capital firm led by a Coinbase co-founder, has acquired the solution to the fourth encrypted panel of the Kryptos sculpture at CIA headquarters for nearly one million dollars. The acquisition marks the end of a decades-long mystery surrounding the artwork, with artist Jim Sanborn selling the answer to fund his retirement and alleviate the burden of managing incorrect submissions. Sanborn received $770,000 from the sale, which also included a mini-model of the sculpture and other ephemera from his private archive.
Installed in 1990, the copper sculpture features four encrypted panels, with the first three solved within a decade. The fourth panel, known as K4, remained unsolved for over thirty years, attracting numerous incorrect submissions, including AI-assisted attempts. Sanborn, aged 80, arranged for an auction in 2025 to sell the solution to K4 and the unrevealed fifth panel, K5, seeking to end the deluge of guesses and secure financial stability for his retirement.
The identity of the bidders remained secret until Paradigm stepped forward. Dan Robinson, a partner at the firm who joined in 2019, initiated the acquisition after reading about the auction. Robinson, who has a long-standing interest in cryptography, stated that owning the solution aligns with the firm’s philosophy and may help attract top talent. The firm will now manage the cryptographic challenge, charging a $1 submission fee, a reduction from the $50 fee previously charged by Sanborn.
Paradigm has announced it will offer $1,000 prizes for solving related decoding challenges and will maintain that the firm has not yet viewed the plaintext solution. Submissions will be verified using a hash function, with the secret answer held in sealed envelopes. The firm will also provide unique access to a video message from Sanborn for the successful codebreaker, though the primary reward is recognition rather than cash.
Despite the transfer of stewardship, Sanborn has indicated he will not shut down his email and may continue to receive contact from solvers. He has hinted that he might embed a teaser for the fifth panel in future public artworks, such as projection cylinders, suggesting that K5 will become solvable once K4 is cracked. The identity of the bidders was previously unknown, with two researchers, Jarett Kobek and Richard Byrne, having previously discovered the K4 plaintext in Smithsonian archives but agreeing not to release it.
The acquisition follows a period of uncertainty where the auction lot included items from Sanborn’s private archive, and the identity of the winners was a closely guarded secret. Paradigm’s involvement brings a new layer of structure to the challenge, with the firm planning to publish the encrypted K5 when the time comes. The sculpture continues to stand outside CIA headquarters in Langley, Virginia, serving as a lasting cryptographic puzzle.
Sanborn’s decision to auction the solution was driven by the overwhelming number of incorrect submissions and his desire for retirement funds. The firm’s approach, which includes a low submission fee and structured contests, aims to encourage legitimate attempts while discouraging brute-force methods. The Kryptos saga, which has captivated cryptanalysts and the public for decades, now enters a new phase under the management of a crypto-focused venture capital firm.
