Coinkite Warns Crypto Industry After $130M Bitcoin Hack
Coinbase competitor Coinkite has issued a warning to the crypto industry after hackers exploited a software flaw in its Coldcard hardware wallets to steal up to US$130 million in Bitcoin.
The company revealed that AI failed to detect a critical vulnerability dating back to March 2021, which forced affected firmware to rely on a deterministic pseudo-random generator rather than a hardware-backed true random number generator, enabling attackers to reconstruct master seed phrases without physical access to the devices.
Coinkite CEO Rodolfo Novak urged all affected users to move their funds immediately and install the latest firmware updates, noting that installing the new firmware only protects newly generated seeds, existing wallet owners must completely replace their seed phrases to secure their assets.