Over $100 million in bitcoin were stolen after a flaw was discovered in the seed generation process of certain Coldcard hardware wallets made by Coinkite. Galaxy Research identified 1,596 BTC taken from approximately 7,300 addresses. Coinkite confirmed that a regression introduced in March 2021 had reduced entropy to roughly 40 bits instead of the required 128 bits, making private keys predictable. The thefts, which began on July 30, appear to be ongoing. To protect themselves, experts recommend using a strong passphrase, dice rolls to boost entropy, and a multisig setup with devices from different manufacturers.
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