Coldcard Confirms Private Key Leak Vulnerability, Losses Exceed $89 Million

A report from cryptobriefing.com indicates that Coldcard has officially confirmed a firmware vulnerability in its older devices that could lead to private key leaks. The flaw reduces seed phrase entropy to only 40 bits, a level low enough that attackers can reconstruct the private keys. Confirmed losses are estimated at between 1,367 and 1,816 bitcoin, translating to roughly $89 million to $116 million. More than 5,200 addresses have been affected, according to the company's disclosure. Coinkite's CEO has issued an urgent advisory, calling on all users to move their funds off the affected devices immediately. The attacks are believed to have taken place mainly between late July and early August, and the team is currently tracing where the stolen bitcoin has been sent. This incident has triggered market panic, and as a result, Bitcoin ETFs recorded $620 million in single-week inflows. The flow pattern shows that investors are moving away from self-custody and toward regulated custody options. (Source: cryptobriefing.com)