Coldcard Wallet Exploit Drains $88 Million: Bitcoin Security Under Scrutiny

A vulnerability in Coldcard wallets has led to the theft of $88.6 million in Bitcoin, prompting concerns about security and potential risks for users.

The issue arose from weak randomness used by Coldcard devices for seed phrases, allowing attackers to predict them and access funds.

Galaxy Research identified three suspected attack waves targeting addresses generated by Coldcard, involving 4,585 addresses and a total of 1,367.05 BTC.

The vulnerability affects Coldcard models Mk2 through Mk5, and users are urged to generate new seeds on updated firmware or switch to different hardware.