Coldcard Wallet Hack Steals Over 1,000 Bitcoin

Popular hardware wallet maker Coinkite rushed out fixed firmware after discovering a critical security flaw that exposed user private keys. The breach has already resulted in the theft of over one thousand bitcoins, worth more than 70 million dollars. Industry experts suggest that attackers used artificial intelligence tools to find the latent code vulnerability at unprecedented speed, changing the cybersecurity landscape for all crypto developers.

Coldcard MK3 devices manufactured with specific older versions are the hardest hit, especially wallets created without user generated dice rolls or extra passphrases. Coinkite warns that simply updating the firmware will not protect existing wallets. Affected users must create entirely new wallets and transfer their funds onchain immediately to stay safe.

Security specialists note that multisignature setups face unique risks because revealing address scripts can allow hackers to frontrun transactions. Experts suggest using private mempool services like MARA Slipstream to protect migration transactions. As the industry processes the fallout, wallet providers are racing to audit their own codebases using advanced AI models before malicious actors strike again.