Coinkite disclosed a critical entropy-generation flaw in COLDCARD firmware for Mk2/Mk3 devices, potentially weakening mnemonic seeds and enabling compromise of self-custodied funds. The issue has been linked to an estimated $38M BTC theft, increasing near-term security concerns and operational risk around hardware-wallet supply chains. While the fix is available, users may need to rotate seeds and migrate assets, potentially driving short-term caution and heightened scrutiny of custody practices.
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ME News reported that on July 31 (UTC+8), PeckShield Alert said hardware wallet maker Coinkite disclosed a critical flaw in entropy generation within the COLDCARD cold wallet firmware. The issue affects Mk2 and Mk3 devices and could reduce the strength of mnemonic seeds created using the compromised firmware. The vulnerability has been linked to a Bitcoin theft valued at about $38 million. Coinkite advised users who generated seeds on the affected firmware to upgrade to the patched release as soon as possible, create new seeds, and migrate their assets. (Source: PANews)