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Coinkite Firmware Bug Exposes Thousands of Bitcoin Users to Hacking

Guavy AI Editorial Team
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A critical bug in Coinkite's firmware has left thousands of Bitcoin users at risk. The vulnerability, which affects Coldcard MK3 devices with firmware version 4.0.1 through 4.1.9, allows hackers to access private keys generated by the device. According to industry experts, AI was likely used in the breach.

The bug is particularly concerning because it affects users who generated 12- or 24-word seeds without using user-generated dice rolls or an extra passphrase. Coinkite has released a fixed firmware update for all three chips, MK3, MK4, and MK5 devices, including the Coldcard Q. Users are advised to upgrade their firmware as soon as possible.

However, updating the firmware does not make existing private keys secure. Users who have been affected by the bug will need to create a new wallet and send their funds on-chain to the new addresses.

Peter Todd, a Core contributor and cybersecurity engineer, has warned that multisignature wallets may also be at risk. He noted that if users move their funds after revealing their multisig script, hackers could use compromised Coldcard keys to steal their funds.

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