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Coldcard releases firmware update after $114 million bitcoin theft

The update requires affected users to create new seeds using physical randomness like die rolls or coin flips, and it says compromised wallets are not made safe by installing the software alone.

Reported · Written up by our desk · Market Structure

CoinDesk reports that Coinkite, the Canadian maker of the Coldcard hardware wallet, has released new firmware after a randomness flaw helped attackers steal more than $114 million in bitcoin.

According to the outlet, Coinkite says it used AI tools, including frontier models such as Kimi, to audit its full system. The review went beyond the original faulty randomness code, leading to fixes in transaction approval, USB data handling, and firmware validation.

CoinDesk also notes that installing the update does not make an existing compromised wallet safe. Users whose seed, or master key, was created on affected firmware between 2021 and July 2026 must generate new seeds and migrate funds to the updated wallet.

The company’s new seed-creation process relies on physical randomness, including 65 key presses at unpredictable intervals, 50 six-sided die rolls, or 128 coin flips. CoinDesk adds that Coinkite replaced the backup random number generator and says the Coldcard re-checks a transaction immediately before signing it, aiming to reduce risk when a computer is compromised at the USB port.

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