Coldcard Vulnerability Triggers Urgent Migration Calls Amid $89M BTC Exposure
A critical security flaw affecting Coldcard hardware wallets has sent shockwaves through the cryptocurrency community.
Coldcard maker Coinkite issued a public advisory urging customers to upgrade affected devices, generate a new seed phrase, and transfer their Bitcoin to a newly secured wallet due to weak software-based randomness during key generation in a firmware release dating back to March 2021.
The vulnerability could allow attackers to recreate private keys and systematically drain wallets.
Dogecoin community member Mishaboar urged users who had previously used a Coldcard device to migrate their funds immediately and avoid reusing any existing Coldcard seed phrase, recommending an additional passphrase layer for extra protection.
The incident has reignited the debate on self-custody versus regulated custodians, with roughly $89 million in Bitcoin potentially affected by the vulnerability, according to reports circulating in the industry.