Coldcard Firmware Update Boosts Seed Generation Security Amid Ongoing Exploit Fallout

Coinkite has released a major firmware update for its Coldcard hardware wallets to improve seed generation security. The update, version 5.6.1 for Mk4 and Mk5 and 1.5.1Q for the Coldcard Q, requires user-supplied entropy to be collected through interactive user actions.

The collected entropy is then mixed with device randomness from secure elements and the hardware RNG to reduce the impact of any single randomness failure. This move comes as confirmed losses from the Coldcard exploit continue to be tallied, with Galaxy Research reporting 1,778 BTC ($76,682) or about $112 million in losses.

The update also adds additional protections around USB data handling and transaction signing by re-verifying transactions immediately before signing. It's essential for users running older firmware to confirm they are using the latest releases and follow Coinkite's guidance on re-seeding before moving funds.