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$70M stolen from Bitcoin Coldcard wallets due to firmware bug reducing seed randomness

Market News
01 Aug 2026, 03:06 WIB
The Daily Hodl
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Bearish
$70M stolen from Bitcoin Coldcard wallets due to firmware bug reducing seed randomness

Researchers at Galaxy Digital report that hackers exploited a firmware bug in Coldcard Bitcoin wallets, stealing about $70 million. The bug reduced the randomness in generating secret recovery phrases, allowing rapid theft mostly from individual self-custody addresses within 41 minutes. Coldcard's maker, Coinkite, has taken responsibility, released emergency firmware updates, and urged users to create new recovery phrases and move their funds to secure wallets. This incident highlights risks in hardware wallet security and the need for prompt updates and fund migration.

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