Key facts
- A security exploit affected Coldcard hardware wallets.
- Approximately $38 million worth of Bitcoin was stolen.
- 594 Bitcoin were stolen due to the vulnerability.
- The flaw allowed attackers to extract Bitcoin seeds.
- Coinkite has released updated firmware for Coldcard wallets.
- Users are urged to take immediate action to protect their assets.
- Experts speculate artificial intelligence may have been used to find the flaw.
- The exploit has fueled debate on self-custody versus exchange-traded funds.
Coinkite has issued updated firmware for its Coldcard hardware wallets after a security exploit led to the theft of approximately $38 million in Bitcoin. The vulnerability allowed attackers to extract Bitcoin seeds, which could compromise years of stored cryptocurrency. Reports indicate that 594 Bitcoin were stolen as a result of this flaw. Experts are considering the possibility that artificial intelligence was used to discover the seed generation vulnerability, intensifying the ongoing debate surrounding cryptocurrency self-custody versus exchange-traded funds.