Coinkite Warns AI Failed to Detect Bug Behind Massive Coldcard Hack

Coinkite Inc., the Canada-based company behind the Coldcard wallets, has acknowledged that a software flaw exploited by hackers to steal $130 million in Bitcoin was not detected by its artificial intelligence (AI) monitoring system.

The hack occurred late last week and affected users who had funds stored on their Coldcard wallets. Coinkite warned that the vulnerability discovered by the hackers is 'a warning for every company building Bitcoin hardware and software, not only us.'

The company has advised firms using AI to monitor security-critical code to undertake immediate reviews. This comes as a stark reminder of the limitations of relying solely on AI in detecting software flaws.