Coldcard Flaw Exposes Self-Custody Vulnerabilities

A major security flaw in the Coldcard wallet has left thousands of Bitcoin users scrambling to move their funds, with over $100 million stolen in a matter of hours.

The issue lies in the random number generator, which was disabled by a simple code directive. This reduced the entropy from 128 bits to 40 bits on older models, making it vulnerable to exploitation.

Hackers took advantage of this flaw, stealing $70 million in just 41 minutes and leaving many users wondering if their self-custody is truly secure.

According to Galaxy Research, 1,596 confirmed BTC were stolen, with a total value of around $130 million. The incident has sent shockwaves through the cryptocurrency community, with Bitcoin's price remaining steady despite the turmoil.