Coldcard Wallets Compromised: Hackers Drain Over $70 Million in Bitcoin

A recent hack has compromised over 1,000 Coldcard wallets, allowing hackers to drain more than $70 million in Bitcoin within just 41 minutes. Strike CEO Jack Mallers called this 'one of the most serious' Bitcoin wallet security breaches to date.

The breach occurred due to a firmware bug that caused the wallets to default to a weak deterministic random number generator instead of their hardware RNG, allowing hackers to easily guess the private keys and steal funds from affected addresses. The hack used an automated tool to scan 1,196 wallets and drain more than 1,082 BTC.

Coldcard users are advised to check their setup immediately, as simply putting a compromised seed back onto a new wallet will not resolve the issue. Mallers recommended that impacted users move funds to newly created wallets on unaffected hardware and provided Strike as a temporary exchange option in the meantime.