A serious security vulnerability has been discovered in Coldcard, one of the most trusted hardware wallet brands among Bitcoin holders, causing significant repercussions. According to Galaxy Research, the number-generator flaw could lead to Bitcoin thefts totaling between $100 million and $130 million. It has been confirmed that over 1,596 BTC have already been stolen across multiple attacks.

It is important to clarify that the Bitcoin network itself was not hacked. The issue lay in the seed phrase generation process of specific firmware. While the manufacturer, Coinkite, is deploying emergency updates, there is a growing recommendation for potentially affected users to move their assets to a new, secure wallet immediately.

This incident serves as a significant wake-up call regarding the myth of safety surrounding single-sig hardware wallets, which were long considered the gold standard for private key storage. In the long term, it is highly likely to accelerate the trend among both individual and institutional investors to move beyond single hardware storage and diversify their infrastructure through multisig schemes or institutional custody services.

Related Links