Coldcard Flaw Exposes Hardware Wallet Security Weakness

Crypto wallet security was put to the test after a firmware flaw in Coldcard devices allowed attackers to reconstruct keys without phishing or malware.

The vulnerability, which affects seeds generated on firmware versions 4.0.1 through 4.1.9, can be exploited by an attacker who can narrow possible inputs and generate candidate seeds offline.

Coldcard's weakness exposed a security problem that even hardware wallets can have bugs.

Binance founder CZ Zhao warned that no crypto wallet is secure and advised dividing holdings across several wallets to limit losses from one failure.