Coldcard Seed Flaw Triggers $88M BTC Losses Amid Data Retention Criticism

A randomness vulnerability in Coldcard wallets led to the theft of 1,367 BTC, valued at over $88 million. Coinkite faces backlash for retaining user emails despite prior claims of data deletion.

Woofun AI reports that a randomness flaw in seed generation within Coldcard hardware wallets enabled attackers to steal over 1,000 BTC in two days. Galaxy Research data indicates the incident involved 1,367 BTC, resulting in losses exceeding $88 million as of Saturday at 17:36 Eastern Time.

Coinkite issued security alerts to email addresses stored since 2019 to notify affected users. The company faces criticism for retaining customer email data, claiming addresses are kept "temporarily" for login verification, despite CEO Rodolfo Novak previously stating that customer data is deleted after 90 days.