Coldcard Flaw May Cost up to 2,000 BTC: Galaxy Research

BitcoinWorld Coldcard Flaw May Cost up to 2,000 BTC: Galaxy Research Galaxy Research has raised concerns that a security flaw in Coldcard hardware wallets could lead to losses of up to 2,000 BTC, roughly $130 million, according to a report from The Block.

The research team has already identified 1,596 BTC stolen from 7,300 addresses, stemming from three confirmed attacks and 14 smaller security incidents.

Root Cause and Scope The vulnerability originates from a random number generation flaw in firmware used by the Coldcard Mk3 through Mk5 models and the Coldcard Q. This flaw potentially allowed attackers to predict or compromise private keys, enabling unauthorized access to funds.

Coinkite, the issuer of Coldcard, has already deployed an emergency update to address the issue. Galaxy Research’s analysis indicates that the total damage could escalate to 2,055 BTC if a fourth attack, which has not yet been fully confirmed, is included.