$40M in Bitcoin Stolen After Coldcard Wallet Firmware Flaw Exposed
AI Market Summary
Reports of ~$40M in BTC drained from ~500 Coldcard wallets via an alleged key-generation firmware entropy flaw highlight acute hardware-wallet and supply-chain risk. Rapid, coordinated outflows and subsequent routing through high-obfuscation mixers can raise near-term perceived counterparty and custody risk across crypto, potentially dampening risk appetite and increasing focus on self-custody verification, firmware provenance, and on-chain monitoring.
Impact level
● High
Affected assets
BTC/USDT-2.74%
AI Insight · BTC/USDTAI Insight
▼ Bearish
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An attacker reportedly siphoned roughly $40 million worth of BTC from about 500 Coldcard wallets after a critical compromise involving the device's key-generation firmware. Blockchain analysts say the affected addresses were drained in a coordinated sweep spanning about 25 minutes. The exploit is believed to have leveraged an entropy weakness in the hardware's derivation-path logic, allowing the attacker to reconstruct private keys. On-chain monitoring shows the funds were quickly routed into high-obfuscation mixing services.
