Trump Orders Government Bitcoin Reserve Amid Coldcard Security Breach

President Trump has signed an executive order to establish a government reserve of Bitcoin. This move is significant, according to Alan Orwick, co-founder of Quai Network, who was interviewed on LiveNOW from FOX.

A security flaw in the Coldcard bitcoin storage device may have allowed hackers to steal approximately $70 million worth of Bitcoin in under an hour. Researchers at Galaxy Research identified two waves of suspicious activity, bringing the estimated losses to nearly $89 million. The issue involves a coding mistake in certain versions of Coldcard that may have weakened one of the wallet's key security features.

The software bug, which was first reported by Forbes, allows sophisticated attackers to figure out recovery phrases under certain circumstances. This could potentially allow them to steal Bitcoin without physically touching the wallet. Coinkite, the company behind the Coldcard device, has released a software update to prevent the problem from affecting newly created wallets.

However, the company warned that simply installing the update will not protect users who already created a recovery phrase using the affected software. Instead, they are urging those users to create a brand-new recovery phrase using the updated software and move their Bitcoin into the newly secured wallet.