Bitcoin wallet flaw risks $86M theft

Cold Bitcoin wallet protection was compromised after a vulnerability was discovered in Coldcard devices, allowing attackers to steal approximately $86 million worth of cryptocurrency. This was achieved by exploiting a flaw in the generation of recovery phrases caused by the use of insecure algorithms. The vulnerability enables re-computation of recovery phrases, access to wallets, and the withdrawal of balances—despite these wallets being considered among the most secure storage options. Several users were affected, prompting the manufacturer to release an urgent update to protect impacted wallets. This incident has raised concerns about trust in cold wallets, even though they are generally regarded as the most secure method of storage.

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