Bullish
Coldcard Firmware Bug Triggers $114M Bitcoin Losses Due to Weak Entropy
2026-08-04 04:41:19
Insufficient entropy in Coldcard mnemonics led to $114M in Bitcoin losses. Galaxy Research warns of ongoing risks, prompting urgent user migrations.
Woofun AI reports that Coinkite disclosed a firmware build error from March 2021 which compromised the randomness of private keys in certain Coldcard wallets. Galaxy Research analysts noted that observed Bitcoin losses escalated from $88 million to nearly $114 million within days, with warnings that additional vulnerable addresses remain at risk. This incident has prompted many users to transfer their Bitcoin holdings away from affected devices.
WOOFUN AI
Impact Assessment · Quick Read
The revelation of a five-year-old firmware flaw undermines confidence in hardware wallet security protocols. With losses approaching $114 million and potential for further exploitation, the incident may accelerate user migration toward alternative cold storage solutions. This event highlights the critical importance of cryptographic entropy in securing digital assets.
Generated by WOOFUN AI · For reference only, not investment advice
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