BIP-110 Soft Fork Delayed Amid Coldcard Wallet Exploit
The activation of Bitcoin's BIP-110 rule change has been put on hold due to a recent exploit in Coldcard wallets. The developers behind the soft fork have announced that they will delay its launch, citing the industry response to the vulnerability.
Coldcard's COLDCARD wallets were found to be generating seed phrases with less randomness than promised, making it easier for hackers to access user funds. Coinkite disclosed the bug on July 30, and thieves had already drained wallets tied to the flaw before the company told owners to move their money.
The delay was announced by Udi Wertheimer, who stated that the decision is a matter of timing, not doubt. He urged anyone running BIP-110 software to switch back to a normal Bitcoin node and warned that nodes still enforcing the rule would do so on their own.