Prize Rules and Supporting Materials
Prepared for Legal Review
Version: [6] | Date: [April 27, 2026]
Sponsor Location: Richmond, BC, Canada
CONFIDENTIAL — DRAFT FOR LEGAL REVIEW ONLY
Important Notice This document is prepared for legal review and does not constitute legal advice. The Sponsor should retain qualified legal counsel in each relevant jurisdiction before publishing or marketing this contest. No actual private keys, seed phrases, wallet addresses, or sensitive secrets are contained in this document. All values in [BRACKETS] are placeholders to be completed before publication. |
Deliverable 1: Official Prize Rules — Bitcoin Treasure-Hunt Book Series
Deliverable 2: Front-Matter Summary for Books 1–4
Deliverable 3: Public Transparency Page Template
Deliverable 4: Winner Verification Workflow (Preserving Anonymity)
Deliverable 5: Testnet Rollout Checklist
Deliverable 6: Legal Review Checklist and Recommended Jurisdictions
Effective Date: [DATE] | Last Amended: [DATE]
The following terms, when capitalized in these Official Rules, have the meanings set forth below. All definitions are provided in plain English for clarity.
Term |
Definition |
Sponsor |
The author and publisher of the Bitcoin Treasure-Hunt Book Series, based in Richmond, British Columbia, Canada. The Sponsor is responsible for administering the contest, funding the prize wallets, and maintaining the Official Rules. |
Participant |
Any individual who attempts to solve the puzzles in any book of the series, whether by purchasing a book or through the No Purchase Necessary route. |
Solver |
A Participant who successfully derives the correct seed phrase (and, where applicable, the correct passphrase), thereby gaining access to a prize wallet and the ability to sweep its contents. |
Wallet |
A Bitcoin wallet address derived from a BIP-39 seed phrase (and, where applicable, a passphrase) that holds the prize funds for a specific book in the series. |
Seed Phrase |
A 24-word mnemonic phrase conforming to the BIP-39 standard, used to deterministically derive Bitcoin private keys. The seed phrase consists of 23 entropy-derived words plus one checksum word. |
Checksum Word |
The 24th word in a BIP-39 seed phrase. This word is mathematically determined by the first 23 words through a SHA-256 hash of the entropy, with the final 8 bits selecting from 8 possible valid words. It is not independently chosen. |
Passphrase |
An additional security layer applied on top of the seed phrase, sometimes referred to as the "25th word." When a passphrase is combined with a seed phrase, it derives a different wallet than the seed phrase alone. In this contest, passphrases consist of 4 uncommon English words. |
Sweep |
The act of transferring all Bitcoin from a prize wallet to one's own wallet. Sweeping is the definitive act of winning; no further steps are required. |
Active Wallet |
The prize wallet that is currently receiving funding from royalty allocations. Only one wallet is active at any given time. |
Prize Pool |
The Bitcoin balance held in the Active Wallet at any given time. The Prize Pool fluctuates based on deposits and Bitcoin price movements. |
Verification Address |
A designated Bitcoin address, owned by the Sponsor, used solely to confirm a Solver's identity through an optional on-chain transaction. The Verification Address is published at [VERIFICATION_ADDRESS]. |
Deposit Log |
A publicly accessible record of all deposits made to prize wallets, including date, amount, transaction ID, and cumulative totals. Published at [WEBSITE_URL]. |
This is a skill-based contest. Solving the puzzles requires intellectual effort, research, and cryptographic computation. No element of chance determines the winner. The outcome depends entirely on the Participant's ability to identify, decode, and correctly assemble the cryptographic components hidden within the books.
The Sponsor will not know and cannot determine the identity of any Solver. Solvers may sweep the prize wallet at any time, without notice, and without obligation to identify themselves. The act of sweeping the wallet is the sole and complete act of winning.
This contest is open-ended with no fixed end date. Each book's prize remains available until the corresponding wallet is swept. There is no deadline by which a Participant must solve any puzzle.
This contest is open to legal residents of Canada and the United States who have reached the age of majority in their jurisdiction of residence (18 or 19 years of age, depending on the applicable province, territory, or state).
Residents of jurisdictions where cryptocurrency contests are prohibited by law are not eligible to participate. Participants are solely responsible for determining whether participation is lawful in their jurisdiction.
This contest is void where prohibited or restricted by law, including but not limited to [LIST_EXCLUDED_JURISDICTIONS].
The following individuals are not eligible to participate: employees of the Sponsor; immediate family members (spouse, parent, child, sibling) of employees of the Sponsor; and individuals residing in the same household as any employee of the Sponsor.
Note on Eligibility Verification Because the Sponsor cannot identify Solvers, eligibility is self-certified. By sweeping a prize wallet, the Solver represents and warrants that they meet all eligibility requirements set forth in these Official Rules. The Sponsor has no means to verify eligibility and accepts no liability for participation by ineligible individuals. |
Mandatory Disclosure NO PURCHASE IS NECESSARY TO PARTICIPATE IN OR WIN THIS CONTEST. |
This free-entry route exists to comply with the Canadian Criminal Code (sections 206–207) and the Competition Act, which require that promotional contests with prizes must not condition entry on a purchase. The NPN route eliminates any legal classification of this contest as an illegal lottery by removing the element of paid consideration.
The NPN route provides the Participant with the same unsolved puzzle clues contained in the book — not the answers, not the decoded seed words, and not any shortcut to the solution. The Participant must still perform all of the same intellectual work, cryptographic computation, and puzzle-solving required of a book purchaser.
Book Purchaser Receives |
NPN Requester Receives |
Ciphers, acrostics, and encoded puzzles embedded in the book's narrative and illustrations |
The same ciphers, acrostics, and encoded puzzles, extracted as plain text without narrative context or illustrations |
Geographic and reference clues woven into the story |
The same geographic and reference clues, stated directly without story context |
The full novel — story, characters, artwork, and reading experience |
Not included — the NPN route provides puzzle elements only |
Contextual clues that may aid solving (e.g., chapter themes, visual patterns) |
Not included — the solver works from the raw puzzle data alone |
The NPN clue package does not contain decoded seed words, private keys, passphrases, or any direct answers. It contains only the same unsolved puzzles that appear in the book, stripped of narrative and visual context.
Most participants will prefer to purchase the book because the narrative, illustrations, and contextual clues provide a richer and more enjoyable solving experience — and every purchase directly grows the prize pool.
Any eligible person may request, at no cost, a complete NPN clue package by mailing a self-addressed stamped envelope (SASE) to:
[MAILING_ADDRESS]
Please include the following with your request:
Include a handwritten or printed note stating: "NPN Entry Request — [Book Title]" and the requester's name (or pseudonym).
Include a brief statement of interest (25–50 words) explaining the requester's interest in the contest. This is an administrative requirement, not a judged component.
One request per person per book. Duplicate requests will not be fulfilled.
Requests are fulfilled by mail only. Email requests are not accepted.
The Sponsor will mail the NPN clue package within 10 business days of receiving a valid request.
The NPN route satisfies the "equal dignity" standard required under Canadian law. NPN entrants receive substantially the same opportunity to solve the contest as book purchasers. The puzzles are identical; only the delivery format and surrounding context differ. No advantage — in clue content, timing priority, or solving opportunity — is conferred by purchasing a book over using the NPN route.
The Sponsor will maintain a pre-prepared NPN clue document for each book in the series. This document is created at the time of book publication and contains every puzzle element necessary to solve that book's contest. The document is identical for all NPN requesters.
Under the Canadian Criminal Code, a promotional contest that requires payment to enter and awards a prize may be classified as an illegal lottery — a criminal offence carrying significant penalties. By offering a genuine free-entry route with equal solving opportunity, this contest removes the element of paid consideration from the legal analysis. Even though this contest is skill-based (and therefore likely exempt from lottery provisions on its own merits), the NPN route provides an additional layer of legal protection that eliminates the risk regardless of how any court or regulator classifies the contest. This is a standard, widely used compliance mechanism in Canadian promotional contests.
Book 1 contains 23 of 24 BIP-39 seed words hidden within its pages through puzzles, ciphers, and encoded clues. The Solver must:
Identify all 23 seed words embedded in the book's content.
Arrange the 23 words in the correct order as indicated by the puzzles.
Compute the 24th checksum word using the BIP-39 standard. This involves performing a SHA-256 hash of the entropy represented by the first 23 words and taking the final 8 bits of the hash to select from 8 possible valid checksum words.
Enter the complete 24-word seed phrase into a BIP-39-compatible Bitcoin wallet application to derive the private key for the prize wallet.
Sweep the prize wallet by transferring the Bitcoin to a wallet the Solver controls.
Prize Wallet Address (Book 1): [WALLET_ADDRESS_BOOK1]
Book 2 uses the same 24-word seed phrase as Book 1. However, the prize wallet for Book 2 is protected by an additional 4-word passphrase. This passphrase was generated using the Bitwarden password generator's passphrase function and consists of uncommon English words.
Book 2's puzzles and clues reveal the 4-word passphrase. Some clues may involve geographic locations or real-world references, but all clues are solvable using publicly accessible information or the book alone. Physical travel is never required.
The passphrase, combined with the seed phrase, derives a different wallet per the BIP-39 standard. This wallet holds Book 2's Prize Pool.
Prize Wallet Address (Book 2): [WALLET_ADDRESS_BOOK2]
Books 3 and 4 follow the same pattern as Book 2: each uses the same base 24-word seed phrase, with a different 4-word passphrase unique to each book, revealed through that book's unique puzzles and clues.
Prize Wallet Address (Book 3): [WALLET_ADDRESS_BOOK3]
Prize Wallet Address (Book 4): [WALLET_ADDRESS_BOOK4]
In accordance with the Canadian Criminal Code, before any optional claim acknowledgement, the Solver will be asked to answer a mathematical skill-testing question without mechanical or electronic aid.
Each skill-testing question is unique — no two Solvers will receive the same question. Questions use the four basic arithmetic operations (addition, subtraction, multiplication, and division) in a multi-step BEDMAS format. Every question is designed to produce a whole-number answer. No fractions, decimals, or rational numbers will appear in the correct answer.
Example format: (48 × 5) − (120 ÷ 6) + 13 = ? Answer: 233
This is a regulatory requirement under the Canadian Criminal Code and does not affect the Solver's ability to sweep the wallet or retain the Bitcoin. The skill-testing question applies only if the Solver voluntarily engages in the acknowledgement process described in Section 8.
The prize for each book is the Bitcoin held in the corresponding prize wallet at the time it is swept by a Solver. The prize is denominated in Bitcoin, not in any fiat currency.
The Sponsor allocates 25% of net royalties from book sales to the Active Wallet.
The funding cycle operates as follows:
While a book's wallet is active (not yet swept), 25% of all book sales across all books in the series are deposited into that Active Wallet.
When a wallet is swept, funding to that wallet stops permanently.
After a sweep, the Active Wallet advances to the next book in sequence.
If Book 1's wallet is swept, all future royalty allocations (including from Book 1 sales) redirect to Book 2's wallet.
If Book 2's wallet is then swept, all royalties redirect to Book 3's wallet.
This pattern continues sequentially through all books.
If all wallets have been swept, the Sponsor may announce a new cycle or cease prize funding at its sole discretion.
Deposits are made [WEEKLY / MONTHLY]. The recommended default cadence is monthly, on or before the 15th of each calendar month. Each deposit is recorded in the public Deposit Log with the following information: transaction ID (txid), Bitcoin amount, date of deposit, and cumulative total deposited.
The Sponsor reserves the right to cap the maximum Prize Pool at [CAP_AMOUNT] per wallet. The suggested default cap is 1.0 BTC or a CAD equivalent of $100,000, whichever is reached first.
Once the cap is reached, royalty allocations are held in reserve until the Active Wallet is swept and the next wallet becomes active, at which point allocations resume.
The Prize Pool value depends entirely on book sales revenue and Bitcoin's market price. The Sponsor makes no guarantee of a minimum prize value. The prize is denominated in Bitcoin, and its fiat-equivalent value may fluctuate substantially.
The approximate retail value of the prize as of [DATE] is [FIAT_VALUE] CAD, based on the current Bitcoin exchange rate as reported by [EXCHANGE_SOURCE]. The actual value at the time of sweeping may be higher or lower than this estimate. This disclosure is provided in compliance with the Canadian Competition Act.
Prize funds are held in a Sparrow Wallet — a desktop Bitcoin wallet application running on a dedicated, air-gapped computer that is not connected to the internet. The Sponsor maintains sole custody of the wallet file and its backup seed. The air-gapped computer is stored in a physically secure location accessible only to the Sponsor.
Sparrow Wallet is open-source software that supports BIP-39 seed phrases and optional BIP-39 passphrases, allowing the Sponsor to manage all prize wallets (base seed and passphrase-protected variants) from a single application. All wallet operations — including deposit address generation and balance monitoring — are performed offline on the air-gapped device, with transaction data transferred via SD card or QR code.
The Sponsor will never move prize funds from the designated wallet except in the case of a documented security compromise. In such an event, the Sponsor will:
Publicly disclose the security incident within 48 hours;
Provide cryptographic proof of the new wallet address;
Update all public records, including the transparency page and Deposit Log; and
Publish a detailed incident report within 14 days.
All prize wallet addresses are published on the Sponsor's website at [WEBSITE_URL].
Every deposit to a prize wallet includes the following publicly recorded information:
Date of deposit;
Bitcoin amount deposited;
Transaction ID (txid) linked to a public block explorer; and
Running cumulative balance of all deposits to that wallet.
Anyone may independently verify wallet balances using the published wallet addresses on any Bitcoin block explorer (e.g., mempool.space, blockstream.info). The Sponsor does not control or mediate access to the Bitcoin blockchain.
The Sponsor will publish a monthly transparency update on [WEBSITE_URL] summarizing: deposits made during the period, current wallet balances, cumulative royalty allocations, and any changes to contest status.
The Sponsor does not require, request, or expect any Solver to identify themselves. Sweeping the wallet IS the win. No further action is required by the Solver.
The Sponsor will never attempt to identify, contact, or de-anonymize any Solver. The Sponsor does not operate any verification process and does not wish to know the identity of any Solver. A Solver who sweeps the wallet is the winner — no further action is required or expected.
If a Solver wishes to participate in publicity (interview, testimonial, or similar), they may contact the Sponsor at [CONTACT_EMAIL] using a pseudonym or anonymous email service. The Sponsor will accommodate anonymity in all public communications and will not request or publish any identifying information without explicit written consent from the Solver.
Critical Safety Information Some puzzle clues may reference real-world geographic locations, landmarks, or publicly accessible sites. ALL clues are designed to be solvable using publicly available information, online resources, or the book's content alone. Physical travel is NEVER required to solve any puzzle. |
If a Participant chooses to visit a location referenced in a clue, they do so entirely at their own risk and expense. The Sponsor strongly encourages all Participants to:
Obey all local laws, regulations, and posted signage at all times.
NEVER trespass on private property, restricted areas, military installations, or any location where public access is not permitted.
NEVER engage in any activity that is dangerous, illegal, or that could cause harm to themselves or others.
NEVER enter bodies of water, climb structures, disturb wildlife, or access areas requiring special permits unless they hold valid permits.
Exercise common sense and prioritize personal safety above all else.
The Sponsor expressly disclaims any responsibility for injury, loss, damage, or legal consequences arising from a Participant's decision to travel to or visit any location. No clue requires physical presence at any location to solve.
The Sponsor has verified that all geographic clues reference locations that are publicly accessible and do not require trespassing or dangerous activity to observe or research.
No paid shortcut services, answer-selling, or commercial solving operations are endorsed or sanctioned by the Sponsor. While the Sponsor cannot prevent secondary markets, Participants who purchase solutions from third parties do so at their own risk with no warranty of accuracy.
Doxxing, harassment, or any attempt to identify, locate, or contact a suspected Solver is strictly prohibited and may result in legal action by the Sponsor or affected parties.
The Sponsor reserves the right to moderate community forums, social media channels, and any Sponsor-controlled platforms to remove content that violates these rules, contains threats, or attempts to de-anonymize Solvers.
The following conduct is prohibited and may be referred to law enforcement:
Coordinated manipulation of contest-related communities or markets;
Social engineering attacks against the Sponsor, its agents, or other Participants;
Any attempt to compromise prize wallet security through technical or non-technical means; and
Any conduct that violates applicable criminal or civil law.
Important Tax Information Bitcoin prize winnings may be subject to income tax, capital gains tax, or other taxes in the Solver's jurisdiction. The Sponsor does not withhold taxes, issue tax forms, or provide tax advice. |
In Canada, cryptocurrency received as a prize may be considered a taxable benefit. The Canada Revenue Agency (CRA) may treat the fair market value of the Bitcoin at the time of receipt as taxable income. Solvers who are Canadian tax residents should consult the CRA's published guidance on cryptocurrency taxation.
In the United States, cryptocurrency prizes may be treated as ordinary income at fair market value on the date received. The Internal Revenue Service (IRS) has published guidance on the tax treatment of virtual currency. Solvers who are U.S. taxpayers should consult IRS guidance and a qualified tax professional.
Solvers are solely responsible for reporting and paying all applicable taxes in their jurisdiction of residence.
Because the Sponsor does not know the identity of Solvers, the Sponsor cannot and will not issue T4A (Canada), 1099 (United States), or equivalent tax reporting forms. The Sponsor strongly recommends that any Solver consult a qualified tax professional in their jurisdiction.
This contest is classified as a skill-based contest, not a lottery, sweepstakes, or game of chance. Winning requires solving complex cryptographic and intellectual puzzles through skill, knowledge, and sustained effort.
Notwithstanding the skill-based nature of this contest, the Sponsor has included a No Purchase Necessary entry route (Section 3) and a skill-testing question (Section 4.4) to comply with the Canadian Criminal Code provisions governing promotional contests (sections 206 and 207).
This contest has not been registered with, approved by, or endorsed by any government regulatory body. The Sponsor recommends that this document be reviewed by legal counsel in all jurisdictions where the contest is marketed.
The Sponsor makes no representation regarding the legality of cryptocurrency ownership, transfer, or taxation in any jurisdiction. Participants are responsible for complying with all applicable laws.
Bitcoin is a volatile digital asset. The value of the Prize Pool may increase or decrease substantially between the time of deposit and the time of sweeping. The Sponsor makes no guarantees regarding the future value of Bitcoin or the fiat-equivalent value of any prize.
To the maximum extent permitted by law, the Sponsor, its officers, directors, employees, agents, and affiliates shall not be liable for any direct, indirect, incidental, consequential, or punitive damages arising from participation in this contest, including but not limited to:
Loss of Bitcoin due to incorrect seed phrase entry or user error;
Technical failures of the Bitcoin network or blockchain;
Loss, theft, or compromise of personal devices or wallets;
Physical injury, property damage, or other harm during travel;
Tax consequences arising from receipt of the prize;
Changes in law, regulation, or government policy affecting cryptocurrency; and
Any other loss or damage not expressly covered herein.
By participating, each Participant agrees to indemnify, defend, and hold harmless the Sponsor and its officers, directors, employees, agents, and affiliates from any and all claims, damages, losses, costs, or expenses (including reasonable legal fees) arising from the Participant's participation in the contest, violation of these Official Rules, or infringement of any third-party rights.
By purchasing a book in this series, requesting NPN clues, or attempting to solve any puzzle, the Participant agrees to be bound by these Official Rules in their entirety.
The Sponsor reserves the right to modify these Official Rules at any time, with notice posted on [WEBSITE_URL]. Material changes will be announced at least 30 days before taking effect. Modifications do not affect wallets already swept prior to the effective date of the modification.
If any provision of these Official Rules is found by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. The invalid provision shall be modified to the minimum extent necessary to make it valid and enforceable.
These Official Rules shall be governed by and construed in accordance with the laws of the Province of British Columbia, Canada, without regard to conflict-of-law principles.
Any dispute arising from or relating to this contest shall be resolved through binding arbitration administered by the British Columbia International Commercial Arbitration Centre (BCICAC), or its successor body, in Vancouver, British Columbia. The arbitrator's decision shall be final and binding on all parties. The parties waive any right to a jury trial or to participate in a class action.
These Official Rules constitute the entire agreement between the Sponsor and Participants regarding this contest and supersede all prior or contemporaneous oral or written communications, proposals, and representations.
The Sponsor shall not be liable for any failure to perform its obligations under these Official Rules due to circumstances beyond its reasonable control, including but not limited to: natural disasters, war, terrorism, government action, pandemic, network failures, power outages, or changes in law or regulation affecting cryptocurrency.
All inquiries regarding these Official Rules should be directed to:
Email:
[CONTACT_EMAIL]
Mailing
Address:
[MAILING_ADDRESS]
The Sponsor recommends beginning with a small initial deposit (e.g., 0.01 BTC) as a "seed deposit" to demonstrate that the wallet is live and the contest is active. This deposit should be made and publicly recorded before or simultaneously with Book 1's publication date.
The Sponsor should consider a staged funding approach: deposit smaller amounts initially, increasing deposit amounts as book sales grow and revenue stabilizes. This approach manages financial risk while maintaining credibility.
Monthly deposits on a regular, predictable schedule build community trust and anticipation. The Sponsor should aim to maintain consistency in timing, even if individual deposit amounts vary with sales.
All deposit amounts and dates should be pre-announced when possible, either on the transparency page or through the Sponsor's social media channels, to maximize community engagement and accountability.
The following front-matter copy is intended for printing inside each book, typically on the copyright page or a dedicated page immediately following the title page.
THE BITCOIN TREASURE HUNT
Hidden within the pages of this book are 23 of 24 BIP-39 seed words. Solve the puzzles, decipher the clues, and arrange the words in the correct order. Then compute the 24th checksum word using the BIP-39 standard — and you will hold the key to a Bitcoin prize wallet.
The prize wallet grows over time. Twenty-five percent of net royalties from every book sold in this series are deposited into the active prize wallet. The current balance, complete deposit history, and full contest rules are published at [WEBSITE_URL].
Prize Wallet Address: [WALLET_ADDRESS_BOOK1]
Sweep the wallet and the Bitcoin is yours. The author will never know your identity.
No trespassing. No dangerous acts. All clues can be solved using this book and publicly available information. Physical travel is never required. If you choose to visit a referenced location, obey all laws and prioritize your safety.
NO PURCHASE NECESSARY. For a free set of puzzle clues, send a self-addressed stamped envelope to [MAILING_ADDRESS] or email [CONTACT_EMAIL] with the subject "NPN Entry Request — [Book 1 Title]." Full Official Rules at [WEBSITE_URL]. Open to residents of Canada and the United States who have reached the age of majority. Void where prohibited.
THE BITCOIN TREASURE HUNT CONTINUES
You already know the 24-word seed phrase from Book 1 — or you will, once you solve it. But Book 2's prize wallet is locked behind an additional layer: a 4-word passphrase.
Hidden within these pages are the clues you need to discover four uncommon English words. Combine the passphrase with the seed phrase from Book 1, and you will derive a new wallet — one holding a separate Bitcoin prize pool, funded by 25% of net royalties from the entire series.
Prize Wallet Address: [WALLET_ADDRESS_BOOK2]
Sweep the wallet and the Bitcoin is yours. The author will never know your identity. Visit [WEBSITE_URL] for the current balance, deposit log, and full Official Rules.
No trespassing. No dangerous acts. All clues can be solved using this book and publicly available information. Physical travel is never required.
NO PURCHASE NECESSARY. For a free set of puzzle clues, send a self-addressed stamped envelope to [MAILING_ADDRESS] or email [CONTACT_EMAIL] with the subject "NPN Entry Request — [Book 2 Title]." Full Official Rules at [WEBSITE_URL]. Open to residents of Canada and the United States who have reached the age of majority. Void where prohibited.
THE BITCOIN TREASURE HUNT — BOOK THREE
The seed phrase remains the same. The passphrase is new. Book 3 conceals a unique 4-word passphrase within its puzzles and clues — four uncommon English words that, when combined with the seed phrase from Book 1, unlock a third Bitcoin prize wallet.
Prize Wallet Address: [WALLET_ADDRESS_BOOK3]
Sweep the wallet and the Bitcoin is yours. The author will never know your identity. Current balance, deposit log, and full Official Rules: [WEBSITE_URL].
No trespassing. No dangerous acts. All clues can be solved using this book and publicly available information. Physical travel is never required.
NO PURCHASE NECESSARY. For a free set of puzzle clues, send a self-addressed stamped envelope to [MAILING_ADDRESS] or email [CONTACT_EMAIL] with the subject "NPN Entry Request — [Book 3 Title]." Full Official Rules at [WEBSITE_URL]. Open to residents of Canada and the United States who have reached the age of majority. Void where prohibited.
THE BITCOIN TREASURE HUNT — BOOK FOUR
The final passphrase. The same seed phrase. Book 4 hides four uncommon English words across its puzzles — the last passphrase in the series. Combine them with the seed phrase, derive the wallet, and claim the final Bitcoin prize pool.
Prize Wallet Address: [WALLET_ADDRESS_BOOK4]
Sweep the wallet and the Bitcoin is yours. The author will never know your identity. Current balance, deposit log, and full Official Rules: [WEBSITE_URL].
No trespassing. No dangerous acts. All clues can be solved using this book and publicly available information. Physical travel is never required.
NO PURCHASE NECESSARY. For a free set of puzzle clues, send a self-addressed stamped envelope to [MAILING_ADDRESS] or email [CONTACT_EMAIL] with the subject "NPN Entry Request — [Book 4 Title]." Full Official Rules at [WEBSITE_URL]. Open to residents of Canada and the United States who have reached the age of majority. Void where prohibited.
The following is a template for the Sponsor's public-facing transparency page. It should be published at [WEBSITE_URL] and updated on a regular basis.
The Bitcoin Treasure-Hunt Book Series is funded by reader support. Twenty-five percent of net royalties from every book sold are deposited directly into the active prize wallet. Every deposit is recorded on the Bitcoin blockchain and can be independently verified by anyone.
This page provides a complete, auditable record of all prize funding activity. We believe in full transparency — you should never have to take our word for it when you can verify it on-chain.
Book |
Wallet Address |
Status |
Current Balance |
Total Deposited |
Last Deposit Date |
Cap Amount |
Book 1 |
[WALLET_ADDRESS_BOOK1] |
Active |
0.000 BTC |
0.000 BTC |
[DATE] |
[CAP_AMOUNT] |
Book 2 |
[WALLET_ADDRESS_BOOK2] |
Pending |
0.000 BTC |
0.000 BTC |
— |
[CAP_AMOUNT] |
Book 3 |
[WALLET_ADDRESS_BOOK3] |
Pending |
0.000 BTC |
0.000 BTC |
— |
[CAP_AMOUNT] |
Book 4 |
[WALLET_ADDRESS_BOOK4] |
Pending |
0.000 BTC |
0.000 BTC |
— |
[CAP_AMOUNT] |
Date |
Book # |
Amount (BTC) |
Transaction ID (txid) |
Cumulative Total |
Notes |
[DATE] |
1 |
0.010 |
[TXID_PLACEHOLDER_001] |
0.010 BTC |
Seed deposit — wallet activation |
[DATE] |
1 |
0.040 |
[TXID_PLACEHOLDER_002] |
0.050 BTC |
Monthly royalty allocation — Month 1 |
[DATE] |
1 |
0.050 |
[TXID_PLACEHOLDER_003] |
0.100 BTC |
Monthly royalty allocation — Month 2 |
[DATE] |
1 |
0.050 |
[TXID_PLACEHOLDER_004] |
0.150 BTC |
Monthly royalty allocation — Month 3 |
Verify any transaction independently at [BLOCK_EXPLORER_URL]. Simply paste the wallet address or transaction ID into the search bar. The Bitcoin blockchain is a public ledger — every transaction is recorded permanently and can be audited by anyone.
The following are suggested social media posts for use when announcing funding updates:
Post
1 — Monthly Deposit:
"Monthly deposit complete! 0.025 BTC added to the Book 1 prize
wallet. Current balance: 0.15 BTC. Verify on-chain: [LINK]
#BitcoinTreasureHunt"
Post
2 — Milestone:
"The Book 1 prize wallet just crossed 0.10 BTC! Every book sold
brings the prize closer to the cap. Can you crack the code? Full
rules and wallet balance: [LINK] #CryptoContest #BitcoinPuzzle"
Post
3 — Transparency Update:
"Transparency update posted. All deposits, txids, and balances
are live on our dashboard. Don't trust — verify. [LINK]
#BitcoinTreasureHunt #ProofOfFunding"
Post
4 — New Book Launch:
"Book 2 is here — and it comes with a new Bitcoin prize
wallet! Same seed phrase, new 4-word passphrase. Solve the puzzles,
sweep the wallet. Details and rules: [LINK] #BitcoinTreasureHunt"
Last updated: [DATE]. All balances independently verifiable on the Bitcoin blockchain.
This document provides a detailed, step-by-step operational workflow for the Sponsor to follow when a prize wallet is swept. The workflow is designed to preserve the Solver's anonymity at every stage.
The Sponsor monitors all prize wallet addresses continuously using one or more of the following methods:
Watch-only wallet: Import the prize wallet's public key (xpub) into a watch-only Bitcoin wallet application. Configure push notifications for any outgoing transactions.
Block explorer alerts: Set up email or webhook alerts on a block explorer service (e.g., Blockstream, mempool.space) for any transaction involving the prize wallet address.
Custom monitoring script: Run an automated script that queries the Bitcoin blockchain at regular intervals and sends an alert when the wallet balance changes.
When the wallet balance drops to zero (or near-zero, accounting for potential transaction fees left as change), the Sponsor:
Confirms the outgoing transaction on at least two independent block explorers.
Records the sweep transaction ID (txid), timestamp, block height, and amount transferred.
Flags the wallet status as "Swept" in internal records.
Within 24 hours of confirming the sweep, the Sponsor publishes a public announcement:
"The Book [N] prize wallet has been swept! Congratulations to the anonymous Solver. Total prize: [AMOUNT] BTC ([APPROXIMATE_FIAT_VALUE] CAD at time of sweep). The wallet was emptied in transaction [TXID] at block height [BLOCK_HEIGHT]." |
Change the wallet status from "Active" to "Swept" on the transparency page.
Record the sweep date, final transaction ID, and total amount swept.
Update the Active Wallet designation to the next book's wallet.
All future royalty allocations (from all books in the series) are immediately redirected to the next book's wallet. Update internal accounting and payment processes accordingly.
The Sponsor does not operate a verification process. The Sponsor does not wish to determine or confirm the identity of any Solver. The wallet sweep itself is the sole and definitive proof of solving. No further verification is offered, requested, or required. The Sponsor takes no proactive steps to identify or contact the Solver.
If the Solver wishes to be publicly acknowledged (under a pseudonym or otherwise), they contact the Sponsor at [CONTACT_EMAIL]. The Solver may use a pseudonym or anonymous email service.
The Sponsor publishes a brief acknowledgement without revealing any identifying information. Example:
"The Solver of Book [N], who goes by [PSEUDONYM], has confirmed their win. We congratulate them on their achievement." |
If the Solver does not wish to be acknowledged, no further action is taken. The Sponsor does not follow up, investigate, or attempt to identify the Solver.
If the Solver engages in the claim acknowledgement process (Step 3), the Sponsor presents a mathematical skill-testing question as required by the Canadian Criminal Code.
The Sponsor sends the skill-testing question via the same communication channel the Solver used to initiate contact. The Solver must answer correctly without mechanical aid. The question involves basic arithmetic operations (addition, subtraction, multiplication, division).
This is a regulatory formality. The skill-testing question does not affect the Solver's ability to retain the Bitcoin they have already swept. The wallet sweep is the definitive act of winning.
The following text-based flowchart illustrates the complete verification workflow:
WALLET
SWEEP DETECTED
Balance
drops to zero; confirmed on 2+ block explorers
▼
PUBLIC
ANNOUNCEMENT
Post
announcement within 24 hours; update transparency page; redirect
funding
▼
DOES SOLVER INITIATE CONTACT?
▼ YES CLAIM ACKNOWLEDGEMENT Solver contacts Sponsor (pseudonym or anonymous email) ▼ SKILL-TESTING QUESTION Canadian compliance; regulatory formality ▼ PUBLISH ACKNOWLEDGEMENT Under pseudonym; no identifying information disclosed |
▼ NO NO FURTHER ACTION Solver remains anonymous. Sweep is the win. Process complete. |
▼
PROCESS
COMPLETE
Active
wallet advances to next book in sequence
Complete this checklist before launching the contest on the Bitcoin mainnet. All items should be tested and verified on the Bitcoin testnet (testnet3 or signet) to ensure end-to-end functionality.
Timeline Requirement Complete the entire testnet trial at least 30 days before Book 1's publication date. This allows sufficient time to resolve any issues discovered during testing. |
|
# |
Task |
Status |
Date Completed |
☐ |
1 |
Generate a test BIP-39 seed phrase on an air-gapped device (never connected to the internet) |
|
|
☐ |
2 |
Derive the testnet wallet address from the seed phrase using a BIP-39-compatible wallet application |
|
|
☐ |
3 |
Create a test passphrase using Bitwarden's passphrase generator (4 words, uncommon word list) |
|
|
☐ |
4 |
Derive the passphrase-protected testnet wallet address and confirm it differs from the base wallet |
|
|
|
# |
Task |
Status |
Date Completed |
☐ |
5 |
Fund the base testnet wallet with testnet Bitcoin (use a testnet faucet) |
|
|
☐ |
6 |
Fund the passphrase-protected testnet wallet with testnet Bitcoin (use a testnet faucet) |
|
|
|
# |
Task |
Status |
Date Completed |
☐ |
7 |
Publish the testnet wallet addresses on a test version of the transparency page |
|
|
☐ |
8 |
Simulate the deposit log with 3–4 test deposits, recording txids accurately |
|
|
☐ |
9 |
Verify that all deposit log entries link correctly to a testnet block explorer |
|
|
|
# |
Task |
Status |
Date Completed |
☐ |
10 |
Recruit 2–3 beta testers to attempt solving a simplified test puzzle |
|
|
☐ |
11 |
Have a beta tester sweep the testnet wallet and verify the process works end-to-end |
|
|
☐ |
12 |
Confirm the sweep is detected by the Sponsor's monitoring system within the expected timeframe |
|
|
|
# |
Task |
Status |
Date Completed |
☐ |
13 |
Test Method A: Have a tester sign a message from the swept wallet; verify the signature |
|
|
☐ |
14 |
Test Method B: Have a tester send a dust transaction (546 sats) to the Verification Address; confirm receipt |
|
|
☐ |
15 |
Verify that the transparency page updates correctly when a wallet is marked as "Swept" |
|
|
|
# |
Task |
Status |
Date Completed |
☐ |
16 |
Test the NPN request process: send a test NPN request by email and verify the response is delivered within 10 business days |
|
|
☐ |
17 |
Test the NPN request process: send a test NPN request by mail and verify the response |
|
|
☐ |
18 |
Test the skill-testing question delivery process — confirm question is presented correctly and response recorded |
|
|
|
# |
Task |
Status |
Date Completed |
☐ |
19 |
Simulate sweeping Wallet 1 and verify that all future funding deposits redirect to Wallet 2 |
|
|
☐ |
20 |
Confirm the transparency page reflects the wallet status change and new active wallet designation |
|
|
|
# |
Task |
Status |
Date Completed |
☐ |
21 |
Review all public-facing copy (Official Rules, front-matter, transparency page) for clarity, accuracy, and consistency |
|
|
☐ |
22 |
Document all issues found during testnet trial and confirm resolution |
|
|
☐ |
23 |
Obtain sign-off from all stakeholders (Sponsor, legal counsel, technical advisor) before proceeding to mainnet launch |
|
|
Disclaimer This document is prepared for legal review and does not constitute legal advice. The Sponsor should retain qualified legal counsel in each relevant jurisdiction before publishing or marketing this contest. |
|
# |
Review Item |
Jurisdiction |
Status |
☐ |
1 |
Review Official Rules for compliance with the Canadian Competition Act (s. 74.06) — adequate and fair disclosure of contest terms, approximate prize value, and odds/skill requirements |
Federal Canada |
|
☐ |
2 |
Review for compliance with Canadian Criminal Code (ss. 206, 207) — lottery and promotional contest provisions; confirm NPN route and skill-testing question satisfy statutory requirements |
Federal Canada |
|
☐ |
3 |
Review for compliance with Quebec's Charter of the French Language (if marketing in Quebec) — all contest materials must be available in French; confirm whether Régie des alcools, des courses et des jeux (RACJ) registration is required |
Quebec, Canada |
|
☐ |
4 |
Review CASL (Canadian Anti-Spam Legislation) compliance if collecting email addresses for NPN requests — ensure implied or express consent requirements are met and unsubscribe mechanisms are in place |
Federal Canada |
|
|
# |
Review Item |
Jurisdiction |
Status |
☐ |
5 |
Review U.S. state sweepstakes registration requirements, especially New York (requires registration and bonding for prizes over $5,000), Florida (requires registration and bonding for prizes over $5,000), and Rhode Island (registration required) |
NY, FL, RI |
|
☐ |
6 |
Review FTC consumer protection requirements — truth-in-advertising standards, clear and conspicuous disclosure of material terms |
Federal USA |
|
|
# |
Review Item |
Jurisdiction |
Status |
☐ |
7 |
Assess whether the contest constitutes a "money transmitting" activity under FinCEN (U.S.) regulations — determine whether the Sponsor's deposit activity triggers Money Services Business (MSB) registration |
Federal USA |
|
☐ |
8 |
Assess whether the contest triggers FINTRAC (Canada) registration or reporting obligations as a money services business or virtual currency dealer |
Federal Canada |
|
☐ |
9 |
Review cryptocurrency-specific regulations in target jurisdictions — Ontario Securities Commission (OSC) guidance, SEC/CFTC guidance on digital assets, New York BitLicense requirements |
ON, NY, Federal USA |
|
☐ |
10 |
Review anti-money-laundering (AML) implications of anonymous prize distribution — confirm that the Sponsor's structure does not create reporting obligations or compliance gaps |
Canada & USA |
|
|
# |
Review Item |
Jurisdiction |
Status |
☐ |
11 |
Review tax reporting obligations — confirm no T4A (Canada) or 1099 (U.S.) obligation exists when the winner's identity is unknown to the Sponsor |
Canada & USA |
|
☐ |
12 |
Assess Sponsor's own tax treatment of royalty allocations to prize wallets — deductibility as promotional expense, timing of deduction, and GST/HST implications |
Federal Canada |
|
|
# |
Review Item |
Jurisdiction |
Status |
☐ |
13 |
Review consumer protection disclaimers for compliance with provincial consumer protection acts (BC Consumer Protection Act, Ontario Consumer Protection Act) and applicable U.S. state consumer protection statutes |
BC, ON, U.S. states |
|
☐ |
14 |
Review limitation of liability and indemnification clauses for enforceability under BC law and target U.S. state laws — particularly unconscionability and public-policy limitations |
BC, U.S. states |
|
☐ |
15 |
Review arbitration clause for enforceability in BC and target U.S. states — confirm compliance with BC Arbitration Act and U.S. Federal Arbitration Act; assess class-action waiver enforceability |
BC, Federal USA |
|
|
# |
Review Item |
Jurisdiction |
Status |
☐ |
16 |
Review privacy implications — confirm no personal information is collected (aside from NPN email requests) and ensure compliance with PIPEDA (Canada) and CCPA (California, USA) |
Canada & California |
|
☐ |
17 |
Review intellectual property protections for puzzle content — copyright registration, trade secret protections for unpublished clues, and terms of use prohibiting unauthorized reproduction |
Canada & USA |
|
|
# |
Review Item |
Jurisdiction |
Status |
☐ |
18 |
Obtain legal opinion on classification as skill contest vs. lottery/sweepstakes — formal opinion letter from qualified counsel in BC and at least one U.S. jurisdiction |
BC, Federal USA |
|
☐ |
19 |
Review insurance options — contest prize indemnity insurance, general commercial liability insurance, and errors-and-omissions coverage for contest administration |
Canada |
|
The Sponsor should retain qualified legal counsel with relevant expertise in the following jurisdictions:
Priority |
Jurisdiction |
Key Issues |
1 |
British Columbia, Canada |
Sponsor's home jurisdiction; governing law of the Official Rules; BC Consumer Protection Act; BC Arbitration Act; provincial gaming regulations |
2 |
Federal Canada |
Competition Act (s. 74.06); Criminal Code (ss. 206, 207); FINTRAC; PIPEDA; CASL; Income Tax Act (tax treatment of prizes and promotional expenses) |
3 |
Ontario, Canada |
Largest Canadian market; Ontario Securities Commission (OSC) cryptocurrency guidance; Ontario Consumer Protection Act; Ontario Gaming, Liquor and Cannabis Authority (AGCO) |
4 |
Quebec, Canada |
Distinct contest law (Régie des alcools, des courses et des jeux); Charter of the French Language requirements; Civil Code of Quebec |
5 |
New York, USA |
Sweepstakes registration and bonding requirements; New York BitLicense for cryptocurrency businesses; AG consumer protection enforcement |
6 |
California, USA |
CCPA privacy compliance; large market; California contest regulations; Department of Financial Protection and Innovation cryptocurrency guidance |
7 |
Florida, USA |
Sweepstakes registration requirements (Florida Department of Agriculture and Consumer Services); Florida contest and gaming statutes |
8 |
Federal USA |
FinCEN money transmission regulations; SEC/CFTC digital asset guidance; FTC consumer protection; IRS cryptocurrency tax guidance; Federal Arbitration Act |
Field |
Value |
Document Title |
Bitcoin Treasure-Hunt Franchise — Prize Rules and Supporting Materials |
Version |
[VERSION_NUMBER] |
Date Prepared |
[DATE] |
Prepared By |
[AUTHOR_NAME] |
Status |
DRAFT — For Legal Review |
Confidentiality |
Confidential — Not for public distribution until legal review is complete |
Prepared for review and approval:
[SPONSOR_NAME]
Sponsor / Author / Publisher
Date: ___________________
Reviewed by legal counsel:
[LEGAL_COUNSEL_NAME]
Legal Counsel
Date: ___________________
— End of Document —