Coinkite released a firmware update for Coldcard hardware wallets to strengthen seed phrase generation. The new version requires users to supply additional entropy through at least 65 unpredictable keypresses, 50 dice rolls or 128 coin flips. This user-supplied entropy is combined with the device’s internal randomness sources, including its secure elements and hardware random number generator. A March 2021 firmware bug had weakened the seed entropy on some Coldcard wallets, reducing cryptographic strength from 128 bits to 40 bits. Confirmed losses from exploiting this vulnerability reached 1,778 BTC, approximately $112 million, making it the third-largest cryptocurrency exploit of 2026.
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