Coldcard Exploit Linked to at Least 15 Attackers, Losses Could Reach $130 Million
At least 15 separate attackers have exploited the Coldcard wallet vulnerability, according to Galaxy Digital research head Alex Thorn.
Galaxy estimates that three confirmed attack waves have caused about $100 million in Bitcoin losses, while a suspected fourth wave could lift the total to approximately $130 million.
Dragonfly managing partner Haseeb Qureshi argued that inexpensive AI-assisted code testing might have detected the flaw, citing reports that an open-source model rediscovered the vulnerability within 20 minutes without internet access.
However, researchers cautioned that these tests occurred after the vulnerability became public and did not prove that AI would have identified it independently beforehand.
Castle Labs said the exploit may have been enabled by a firmware bug that generated private keys with only about 40 bits of entropy, far below the 128-bit security typically provided by a standard 12-word seed phrase. $BTC
At least 15 separate attackers have exploited the Coldcard wallet vulnerability, according to Galaxy Digital research head Alex Thorn.
Galaxy estimates that three confirmed attack waves have caused about $100 million in Bitcoin losses, while a suspected fourth wave could lift the total to approximately $130 million.
Dragonfly managing partner Haseeb Qureshi argued that inexpensive AI-assisted code testing might have detected the flaw, citing reports that an open-source model rediscovered the vulnerability within 20 minutes without internet access.
However, researchers cautioned that these tests occurred after the vulnerability became public and did not prove that AI would have identified it independently beforehand.
Castle Labs said the exploit may have been enabled by a firmware bug that generated private keys with only about 40 bits of entropy, far below the 128-bit security typically provided by a standard 12-word seed phrase. $BTC