Coinkite Hackers Drain Over $100M from Bitcoin Wallets via Software Flaw

Hackers have stolen more than $100 million worth of Bitcoin from thousands of wallets after exploiting a software flaw in Coinkite's Coldcard devices.

The breach, which was first identified by researchers at Block Inc., affected approximately 5,000 wallets and occurred despite the fact that these devices were marketed as one of the safest storage options available for cryptocurrency.

A flaw in the wallet software allowed attackers to predict recovery credentials that users believed were securely randomized. This enabled them to recreate those seed phrases by calculating the same values, gaining access to affected wallets and transferring Bitcoin without needing the physical devices.

The incident has sparked concern across the cryptocurrency community, with some investors questioning whether they can truly rely on self-custody methods to protect their digital assets.