Coldcard Wallet Breach Results in $88.6 Million Bitcoin Heist

A recent security breach has affected thousands of Bitcoin wallets stored on Coldcard hardware devices. The vulnerability, present in the March 2021 firmware release, allowed malicious actors to drain funds from wallets by exploiting weak software-generated randomness in key creation.

The attack resulted in the theft of approximately $88.6 million worth of Bitcoin, with affected funds averaging a dormancy period of nearly three years. Galaxy Research identified three distinct attack waves targeting Coldcard-generated addresses, affecting 4,585 addresses and stealing around 1,367.05 BTC.

Dogecoin advocate Mishaboar has called on cryptocurrency holders to take immediate action, advising users to transfer their assets to a new wallet and create a completely new seed phrase, rather than reusing the original one. Coldcard itself has instructed users to upgrade their devices, generate fresh seed phrases, and carefully move their funds away from affected wallets.