Canadian Bitcoin hardware maker Coinkite has warned users of its Coldcard Mk3 signing device to move funds after identifying a potential seed-generation risk. Seeds created with firmware version 4.0.1, released in March 2021, through version 5.0.3 could put funds at risk, while Mk4, Q and Mk5 models are not affected. Bitcoin security experts are currently examining an unexplained coordinated sweep of 594.48 BTC, worth approximately $38.3 million, conducted across 500 transactions within a three-block window. No definitive public evidence has yet established a link between this drain and the Mk3 defect. AnchorWatch CEO Rob Hamilton noted that all involved addresses were single-signature, while Wizardsardine CEO Kevin Loaec hypothesized a low-entropy random number generator as a potential cause.
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