Coldcard Bitcoin Theft Continues, Now Estimated Over $114 Million In Total Stolen
Hackers continue to drain Coldcard Bitcoin wallets, with the total amount stolen now estimated to be standing at over $114 million. A fourth wave of attacks likely started on Sunday evening, according to Galaxy Research’s Alex Thorn.
Intelligence analysis by Llama
A firmware bug in Coldcard Mk3 devices has allowed hackers to guess investor seedphrases, resulting in the theft of over $114 million in Bitcoin. Coinkite has halted shipments of the product and is asking 'hard questions about our company'.
Imagine you have a special box where you keep your Bitcoin safe. But someone found a way to guess the combination to the box, so they can take all your Bitcoin. This is what happened to some people who used a product called Coldcard. Now they are trying to figure out how to fix the problem and make sure it doesn't happen again.
Analysis
A $60B Vote of Confidence
The ongoing hack of Coldcard Bitcoin wallets has resulted in the theft of over $114 million in Bitcoin, with a fourth wave of attacks likely starting on Sunday evening. According to Galaxy Research’s Alex Thorn, 388.9 Bitcoins worth over $29 million had been moved in new transactions that were highly likely to be part of the theft. This is not the first time that Coldcard users have been targeted, with hackers taking over $35 million in Bitcoin from wallets on Thursday. Coinkite, the company behind Coldcard, has admitted that a firmware bug in Coldcard Mk3 devices starting with version 4.0.1 in March 2021 caused seed generation to fall back to a weak software Pseudorandom Number Generator instead of the hardware true random number generator, allowing hackers to essentially guess investor seedphrases. The company has since halted shipments of the product and is asking 'hard questions about our company'.
Why Cursor?
Coinkite has been at the forefront of Bitcoin security, providing users with a range of products to secure their Bitcoin holdings. However, the ongoing hack has raised questions about the security of these products and the trust of investors in Coldcard. The company has destroyed its remaining Coldcard inventory manufactured with the vulnerable firmware and is urging users to immediately move their funds. Engineers at payments company Block have investigated the hack and reported that the hackers used a top blockchain services provider for help in moving the funds, and that they’ve contacted the provider and federal authorities with their findings.
The Road Ahead
The ongoing hack has significant implications for the security of Bitcoin wallets and the trust of investors in Coldcard products. Coinkite has a long history of providing secure products to Bitcoin users, but the ongoing hack has raised questions about the company's ability to protect its users' funds. The company has taken steps to address the issue, but it remains to be seen whether these measures will be enough to restore trust in Coldcard products.
Key points
- Hackers have stolen over $114 million in Bitcoin from Coldcard wallets.
- A firmware bug in Coldcard Mk3 devices has allowed hackers to guess investor seedphrases.
- Coinkite has halted shipments of the product and is asking 'hard questions about our company'.
- The company is urging users to immediately move their funds.
- Engineers at payments company Block have investigated the hack and reported that the hackers used a top blockchain services provider for help in moving the funds.
Coinkite has taken steps to address the issue, including halting shipments of the product and destroying its remaining inventory. The company is also urging users to immediately move their funds. While the ongoing hack has raised questions about the security of Coldcard products, it is possible that the company will be able to restore trust in its products and provide secure solutions for Bitcoin users.
The ongoing hack has significant implications for the security of Bitcoin wallets and the trust of investors in Coldcard products. If Coinkite is unable to restore trust in its products, it could lead to a loss of confidence in the company and potentially even the Bitcoin market as a whole.
