negativeSYS.SOURCE: The Hacker News• 2026-08-01T22:47:22+05:30

Coldcard Hardware Wallet Vulnerability Exploited in $70 Million Bitcoin Theft

#hardware wallet #firmware security #cryptocurrency #vulnerability

A firmware vulnerability in Coldcard hardware wallets allowed an attacker to steal $70 million in Bitcoin by exploiting a flawed pseudorandom number generator (PRNG) that reduced entropy in seed generation. Coinkite issued emergency firmware updates, but existing seeds remain at risk if generated before the fix.

An attacker drained 1,196 Bitcoin addresses in 41 minutes on July 30, taking 1,082.65 BTC worth about $70.2 million at the time. Galaxy Research mapped the sweep and tied it to a firmware flaw in Coldcard, the Bitcoin-only hardware wallet made by Canadian firm Coinkite.

A March 2021 firmware integration error routed seed generation to a deterministic software pseudorandom number generator (PRNG

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