Bitcoin Price Drops Amid $40M Theft From Compromised Wallets

A security flaw in Coldcard hardware wallets has led to the theft of approximately $40 million worth of Bitcoin from nearly 600 wallets. The issue involves predictable key generation, compromising wallets that users believed were secure.

The incident has caused a drop in Bitcoin prices, though it remains above $60,000, with fears it could fall below $58,000.

Experts warn users to move their funds to new wallets with new seeds, as firmware updates do not fix compromised keys.

The incident raises concerns about increased crypto attacks fueled by AI tools, with a race against time to secure assets.