AI-Powered Attack on Coldcard Hardware Wallets Puts $114M in Bitcoin at Risk
A major security breach is underway against Coldcard hardware wallets, putting nearly $114 million in Bitcoin at risk. According to reports, artificial intelligence (AI) is driving the attack.
Coldcard, a leading manufacturer of hardware wallets, has been targeted by an AI-powered attack that exploits peripheral vectors rather than directly targeting the wallet's firmware. This approach allows attackers to craft hyper-personalized phishing campaigns and automate large-scale attacks against specific targets.
The use of AI in crypto cyberattacks is becoming increasingly common, with recent reports from firms like Chainalysis and CertiK documenting a sharp rise in AI-powered tools within hackers' arsenals. In the Coldcard case, AI has industrialized social engineering by automatically identifying high-net-worth crypto profiles across social media and delivering perfectly calibrated fraudulent communications.
For Bitcoin self-custody holders, this incident serves as a warning signal that no device is entirely immune to sophisticated attacks. Security experts emphasize that the human and digital environment surrounding hardware wallets remains the weak link, rather than the device itself. To mitigate risks, users are advised to never enter seed phrases on connected devices, verify physical integrity upon receipt, be suspicious of urgent communication requests, and enable BIP39 passphrases as an additional layer of security.