COLDCARD Wallet Flaw Tied to $38 Million Bitcoin Theft

Coinkite recently confirmed a critical security flaw in the entropy generation process for specific COLDCARD Mk2 and Mk3 hardware wallets. This issue weakened the security of wallet recovery seeds created on those devices, making them vulnerable to unauthorized access.

Security researchers at PeckShield estimate that this vulnerability contributed to the theft of approximately 38 million dollars worth of Bitcoin. The flaw specifically impacts users running older versions of the wallet firmware.

Owners of these devices should check their firmware status immediately. Coinkite has provided instructions for users to update their software to protect their assets from further risk. If you are using an older COLDCARD, moving your funds to a new, secure wallet is the safest path forward until you can verify your device status.

This incident serves as a sharp reminder about the importance of keeping hardware security tools updated. Always stay current with manufacturer security bulletins to keep your digital assets safe from potential exploits.