Coldcard Hack Exposes Hundreds of Wallets to Stolen Funds

A surprise attack on Coldcard's bitcoin-only hardware wallets has left users reeling after an estimated $40 million in BTC was stolen. The attackers exploited a bug that allowed them to drain over 500 wallets, mostly using single-signature security.

Coldcard, developed by Coinkite, is a type of secure wallet that keeps private keys offline and uses dual secure elements for transaction signing. However, users who generated seeds from affected firmware versions (4.0.1 or later) are at risk, according to the company's developers.

The threat has also spread to other hardware wallets due to their ability to import seeds. Security researchers warn that if a seed was exported and imported into another wallet, it remains vulnerable.

Panic is growing in the crypto community as some predict a further price drop, potentially below $58,000, as news of the attack spreads.