Coldcard Hack Exposes Weakness in Crypto Hardware Wallets

A recent attack on Coldcard hardware wallets has resulted in around $70 million worth of Bitcoin being stolen. The incident occurred when attackers exploited a bug that affected certain firmware versions, including Mk3, Mk4, and Mk5 models. Coinkite, the company behind Coldcard, issued an emergency firmware update for all affected models.

The attack is ongoing, with some reports suggesting that over 1,200 Bitcoin addresses have been drained of more than 1,000 Bitcoins. The company's CEO, Rodolfo Novak, has taken full accountability for the firmware bug and acknowledged that its review process had failed to catch it.

Security researchers warn that users who exported a seed generated in a vulnerable Coldcard may also be at risk if they import it into another wallet.