ColdCard Exploit Drains $1.6M from User Account

Binance's CEO, CZ, flagged a critical exploit in ColdCard hardware wallets that led to the loss of $1.6 million CAD worth of Bitcoin (BTC) from user @itscoachgoodman on July 29.

The issue was linked to a pseudo-random number generator flaw discovered in 2021, which made it possible for AI brute-force attacks despite offline storage. This vulnerability is reminiscent of the TrustWallet bug that caused $12 million in losses years ago, highlighting the importance of hardware wallet code quality and issuer accountability over cold-storage best practices.

BTC price action on the 4h chart shows the current price at $62,586.83, testing the lower Bollinger Band support near $62,201 while EMA50 resistance at $64,009 and EMA200 at $63,831 cap upside, with a MACD death cross at -405 confirming bearish momentum and an RSI of 34 leaving room for further downside.