A breach has targeted Coldcard, a bitcoin-only hardware wallet, resulting in over $100 million US worth of bitcoin stolen. Coldcard, developed by Coinkite in Toronto, enhances security by storing seed phrases offline, serving as a master key for the bitcoin-only wallet. The recent hack exploited a software bug, allowing hackers to access users’ wallets without physical possession of the device.
Coinkite warned users of the vulnerability and advised them to move their funds immediately. The attack has led to 1,596 bitcoin stolen from around 7,300 addresses, with a potential total loss of 2,055 bitcoin valued at about $130 million US. The firm is actively investigating the incident and has shared information with law enforcement agencies and other relevant entities.
To safeguard against the hack, users are encouraged to update their Coldcard firmware and refrain from generating new seed phrases until the fix is installed. While the investigation is ongoing, experts caution that the damage may have already occurred. Affected users are advised to transfer their funds to a secure address or utilize a different custodian/exchange. Coinkite is coordinating with legal authorities to aid in identifying the perpetrators responsible for the breach.
