Coldcard Hardware Wallets Hacked for $130M in Bitcoin

A critical firmware vulnerability in Coldcard hardware wallets has resulted in one of this year's most significant Bitcoin theft incidents, with total losses surpassing $130 million.

The security flaw originated from a defect introduced in March 2021, which compromised the randomness of seed phrase generation on impacted devices. This weakness reduced cryptographic key strength from the standard 128 bits down to merely 40 bits, enabling attackers to crack wallet security through brute force methods without requiring physical device access.

Data from blockchain intelligence provider Glassnode indicates that Bitcoin active addresses climbed to approximately 980,000 daily transactions in the wake of the security breach. This represents the network's most active period since December 2024.