Coldcard Hack Exposes Five-Year-Old Vulnerability in Crypto Security

A recent hack of Coldcard Bitcoin wallets exposed a five-year-old vulnerability discovered by AI. The incident led to a massive transfer of $15 billion worth of Bitcoin to safer wallets, exceeding the $130 million stolen in the hack.

The hack exploited a known weakness, prompting long-term holders and users of other hardware wallets like Ledger and Trezor to switch to multisig for added security. This move highlights the importance of rapid detection and response to threats, especially those accelerated by AI.

The hack underscores that while hardware wallets reduce risk, they are not foolproof. The incident emphasizes the need for faster and more frequent code audits in crypto security to prevent similar breaches in the future.