Hardware wallet maker Coinkite released a security update for its Coldcard devices after a seed-generation flaw allowed attackers to steal more than $130 million in Bitcoin. The vulnerability, dating back to 2021, reduced entropy on some affected devices from 128 bits to roughly 40 bits, making private keys easier to guess. An initial attack drained 594 BTC, worth about $38 million, from roughly 500 wallets in just 25 minutes. Coldcard now requires users to add randomness when generating a new seed, using at least 65 key presses, 50 dice rolls, or 128 coin flips. Law enforcement authorities continue investigating the thefts and are working to identify those responsible.
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