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Coldcard entropy flaw fuels warnings for hardware wallet users

Galaxy Digital researchers said coordinated attacks have stolen more than 1,596 Bitcoin, worth at least $100 million, by exploiting the affected devices.

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Coldcard disclosed an entropy-generation flaw affecting multiple of its hardware wallet devices, raising concerns about how wallets generate the randomness used to create private keys for Bitcoin, Cointelegraph reported.

According to Galaxy Digital researchers cited by Cointelegraph, attackers have been able to steal more than 1,596 Bitcoin worth at least $100 million through several coordinated attacks since the July 31 disclosure.

The outlet said the vulnerability did not exploit Bitcoin itself or break modern cryptography, but instead targeted the randomness, or entropy, that underpins wallet seed phrase creation.

Cointelegraph also noted that Coinkite told users on July 31 to consider wallets created on affected firmware at risk and to migrate funds to newly generated wallets, while Core Lightning developer Dustin Dettmer suggested the issue may have originated during firmware changes made in 2021.

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