Coldcard wallet exploit nets over 1,800 BTC from self-custody users; flaw traced to 2021-era firmware RNG weakness

AI Market Summary

Galaxy Research reports a Coldcard hardware wallet firmware flaw (weak RNG) active since 2021, linked to theft of over 1,800 BTC from self-custody users and impacting 7K+ addresses. The incident elevates operational and counterparty risk perceptions around self-custody tooling, potentially tightening risk appetite and increasing demand for audits, updates, and more conservative wallet practices in the near term.

Impact level

● Medium

Affected assets

BTC/USDT-0.08%

AI Insight · BTC/USDTAI Insight

▼ Bearish

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More than 1,800 BTC was stolen from self-custody users in a recent attack targeting Coldcard hardware wallets. Galaxy Research said the issue stems from a weak random number generator embedded in the device's firmware, a vulnerability that has been present since 2021. The firm estimates more than 7,000 addresses were affected.

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