Coldcard Security Flaw Triggers R$578 Million in Losses

A recent security flaw in the Coldcard hardware wallet has led to significant losses for its users. According to estimates, the breach could result in around R$578 million in losses.

The issue was discovered after a five-year-old firmware bug was found in the Coinkite devices, which generated seed phrases with low randomness, making private keys vulnerable to guessing.

A total of 39,600 BTC (approximately US$2.5 billion) were transferred on July 31st, surpassing the previous record of 39,900 BTC transferred on November 16, 2022, following the FTX collapse.