Coldcard Hack Exposes $100M, Sparks Fear of AI-Driven Attacks on Crypto

A recent cybersecurity breach has shaken the cryptocurrency world, with $100 million stolen from over 500 Coldcard hardware wallet users.

The bug allowed hackers to exploit predictable software-based key generation and access funds despite the wallet's security features designed to provide randomly generated number strings.

Coinkite, the company behind the Coldcard wallet, warned affected users that their funds may be at risk and urged them to update their firmware and generate a new seed for migration to a new wallet.

The breach has caused panic in the industry, with Bitcoin's price dropping further despite holding above its 'security' baseline of $60,000.

Experts warn that AI software may cause issues in the near future due to its growing capabilities, allowing attackers to replicate attacks like this one with greater success.