AI-Powered Hackers Drain Over $112M in BTC from Coldcard Wallets
A massive cyberattack on Coldcard hardware wallets has left over $112 million in Bitcoin drained from more than 8,600 individual wallet addresses. The attack exploited a firmware vulnerability dating back to March 2021, which was discovered by a software developer as far back as May 2025.
The attackers leveraged artificial intelligence systems to identify and weaponize the security flaw, with Galaxy Research concluding that the AI used lacked cybersecurity guardrails.
Coldcard CEO Rodolfo Novak released an official statement of apology, while Coinkite published a security bulletin on July 30 and deployed corrected firmware by July 31. However, simply installing updated firmware cannot resolve the underlying security problem, as any seed phrase created using compromised firmware remains permanently vulnerable to exploitation.
Users are required to generate an entirely new seed phrase using patched firmware versions and transfer all holdings to freshly created wallets, with zero instances of theft occurring from multisignature wallet configurations.