Coldcard Wallet Flaw Costs Investors $88M in Stolen BTC

A security flaw in Coldcard wallets has led to the theft of $88.6 million worth of Bitcoin, according to reports.

The vulnerability, caused by weak randomness in seed phrase generation from a 2021 firmware update, affects models Mk2 through Mk5.

Attackers were able to predict seed phrases and access funds, resulting in three waves of attacks.

Users are advised to create new seeds with updated firmware or switch hardware, but even moving funds is risky due to potential interception by attackers.