Coldcard Hackers Steal Over $86 Million from 4,500 Wallets

A security flaw in Coldcard's hardware Bitcoin wallet has led to the theft of over $86 million from more than 4,500 wallets. The hack exploited a vulnerability in the software used to generate the wallet's seed phrase, allowing attackers to recreate users' private keys and access their Bitcoin.

Coldcard devices are designed to store Bitcoin in cold storage, keeping cryptocurrency offline and disconnected from the internet. However, the flaw made it possible for hackers to gain access even when the wallets were not connected to the internet.

The attack grew rapidly over just a few days, with initial losses estimated at around $38 million before increasing to $86 million by Monday. Coinkite Inc., the company behind Coldcard, has released fixed firmware to address the vulnerability and prevent further attacks.