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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
08/22/2026

Coldcard Ships New Security Firmware Following $130 Million Bitcoin Exploit

What happened: Coinkite has released a new Coldcard firmware update requiring users to add manual entropy—such as 65 random key presses, 50 dice rolls, or 128 coin flips—when generating wallet seeds.

Coldcard Ships New Security Firmware Following $130 Million Bitcoin Exploit

What happened: Coinkite has released a new Coldcard firmware update requiring users to add manual entropy—such as 65 random key presses, 50 dice rolls, or 128 coin flips—when generating wallet seeds. This follows the discovery of a firmware flaw dating back to March 2021 that allowed attackers to exploit weak randomness, resulting in the theft of approximately 1,816 BTC (valued at $116–130 million) from over 5,200 addresses. The latest update also addresses additional vulnerabilities uncovered during a three-week review, with Coinkite crediting AI-assisted tools for identifying further bugs.

Why it matters: The Coldcard incident is a stark reminder that hardware wallet security depends not only on device design but also on robust software practices and user vigilance. The scale of the exploit—one of the largest in hardware wallet history—demonstrates that even well-regarded products can harbor latent risks for years. Mandatory user-supplied entropy is a significant shift, potentially setting a new standard for wallet seed generation across the industry.

Source: Decrypt