Bitcoin Theft Hits $114 Million as Hackers Exploit Coldcard Wallet Flaw

A bitcoin theft is ongoing, with hackers exploiting a vulnerability in certain Coldcard hardware wallets to steal an estimated $114 million from affected users. Coinkite, the company behind the wallet, has urged owners to migrate their funds immediately.

The issue stems from a flaw in the firmware that affects setups where only one key controls the funds and no second signature is required. This allows attackers to deduce the seed, or master key, used to govern the wallet's coins and empty it without any user interaction.

The vulnerability has been present since 2021 and affects specific devices and firmware builds. Coinkite advises owners of affected wallets to create a new seed and transfer their funds, warning that simply updating the device is not enough to resolve the issue.