Bitcoin
Coldcard Entropy Flaw Raises Questions About Hardware Wallet Security
A critical vulnerability in Coldcard devices has exposed over 1,596 Bitcoin and reignited debate over whether any hardware wallet can be truly secure.
Coldcard disclosed an entropy-generation flaw affecting multiple devices on July 31, prompting researchers at Galaxy Digital to document coordinated attacks that yielded more than 1,596 Bitcoin valued at over $100 million. The vulnerability did not compromise Bitcoin's underlying cryptography but rather weakened the randomness used to generate private keys, allowing attackers to reduce the pool of possible keys and potentially reproduce them.
The flaw went undetected for over five years. Core Lightning developer Dustin Dettmer suggested it may have originated during firmware changes in 2021. Coinkite, the company behind Coldcard, released firmware fixes and instructed affected users to migrate funds to newly generated wallets.
The incident has surfaced a fundamental tension in hardware wallet security: the process of generating seed phrases—something most users never examine—remains a critical point of failure. The question of whether the vulnerability extends to other hardware wallet manufacturers remains unresolved.
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