A software bug in COLDCARD hardware wallets caused seed generation to use a software fallback instead of the intended hardware random-number path, affecting users who should replace exposed seeds and move funds. Cold storage relies on multiple layers of software, hardware and human choices that each represent potential failure points. AI may accelerate discovery of custody vulnerabilities across the software stack, though current evidence shows it in testing and review rather than breaking Bitcoin’s cryptography. The Dark Skippy attack demonstrated that seed material can be exfiltrated through valid Bitcoin transaction signatures. Bitcoin’s cryptographic core remains intact.
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