$70M Bitcoin Theft Exposes Weakness in Coldcard Wallet Security

A recent $70 million Bitcoin theft from Coldcard wallets has sparked concerns about security in the cryptocurrency space. However, Ledger and Trezor have reassured their users that they are not affected by the firmware flaw, which allowed hackers to drain 1,082.65 BTC from 1,196 addresses in just 41 minutes.

Ledger attributed its immunity to a certified random number generator built into its secure element chip, while Trezor stated that it does not share Coldcard's custom firmware and therefore is not vulnerable. Bitkey, Jade, and Tangem also issued similar statements, assuring their users that they are safe.

Trezor did issue a warning to users who created seeds on affected Coldcards and later restored them on other devices: these users remain exposed due to the weak randomness associated with those seeds.

The theft has had significant consequences for Bitcoin's social sentiment, which fell to a record low. Additionally, U.S. spot Bitcoin ETFs shed $265.4 million on July 31, with BlackRock's IBIT accounting for $122.7 million of that loss.