- Coldcard is a hardware wallet whose Coldcard Q and MK4 cards were hacked between July 29 and August 1.
- Unconfirmed reports also indicate sweeps from MK5 devices.
- The hacks occurred in 3 distinct waves, resulting in a total loss of 1,367 BTC, or $89 million at the current market price.
- The hacks took place after hackers drained wallets by correctly guessing keys generated from a random seed phrase generator.
Coldcard Hack Loses $89 Million in Bitcoins
Coldcard, one of the most trusted Bitcoin hardware wallets, has encountered a major hack where its users lost nearly $89 million worth of Bitcoins. The company’s cold wallet, which can only be used for Bitcoin, has been hacked after hackers successfully decoded its random seed generator keys. The keys were used to generate seed phrases for its users.
Most of the sweeps were executed in the first wave, where 1195 hacks took place. In the second wave, 1309 hacks took place, but the net lost amount was much lower at 76 BTC. The third wave was the least damaging, with 300 hacks draining 208 BTC.
Currently, the hack is limited to MK3, MK4, and Coldcard Q wallets. There have also been some unconfirmed reports of losses from MK5 devices.
The method of the hack is being called “random seed entropy” within security circles.
What is Cold Card?
Coldcard is a Bitcoin-only hardware wallet developed by Coinkite. It offers a QWERTY keypad and a numerical keypad device, s similar to pre-smartphone mobile phones. A reference image is attached above.
Frequently Asked Questions
Is there a possibility of recovery for Coldcard users?
There is little to no chance of recovery because such hacks are engineered with preplanned exit routes that allow hackers to launder funds.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
