Coldcard Hack Losses Top 1359 BTC, Erasing $85 Million

A major hack has affected hardware wallet maker Coldcard, resulting in losses of over 1,359 BTC. This translates to approximately $85.32 million in value. The incident occurred due to firmware generated by Coldcard that produced seed phrases with insufficient randomness.

Attackers were able to narrow down the possible seed phrase combinations and infer private keys, allowing them to withdraw the held Bitcoins.

Binance co-founder Changpeng Zhao has urged users of vulnerable wallets to take immediate action. According to him, a firmware update alone cannot fix vulnerabilities in existing wallets, and users must generate new seeds and move their assets.