Critical Coldcard Flaw Leads to 70 Million Dollar Bitcoin Theft

Bitcoin holders using Coldcard hardware wallets are facing significant losses after a serious firmware flaw was discovered. This issue allowed attackers to recreate private keys remotely, meaning they did not need physical access to the devices to steal funds. Data shows that 1,082 BTC, worth more than 70 million dollars, was moved from 1,196 addresses in just 41 minutes.

The root cause was a flaw in the way certain devices generated seed phrases. Instead of using the hardware based random number generator, the firmware used a predictable software source. This error appeared in versions released back in March 2021. While new firmware patches now fix the software issue, they cannot retroactively secure seeds that were already created using the weak method.

This incident highlights that even hardware wallets carry risks despite their offline reputation. Industry experts suggest that users should consider spreading their assets across multiple wallets to minimize potential damage from a single point of failure. It remains a stark reminder to keep hardware firmware updated and to stay alert regarding security news that affects your specific devices.