⚠️ Important HACK warning for anyone storing #Bitcoin on a COLDCARD:
This wasn’t a traditional “hardware wallet hack” where someone remotely accessed the physical device.
A firmware bug caused certain COLDCARD devices to generate seed phrases with far less randomness than intended. That reduced the number of possible seed phrases enough for attackers to recreate vulnerable private keys offline and sweep the Bitcoin without ever touching the device or seeing the recovery words.
Galaxy Research has now identified three waves involving approximately 1,367 BTC (Nearly $89 million) from 4,585 addresses.
Who may be affected?
Seeds generated on:
- Mk2/Mk3 firmware 4.0.1–4.1.9
- Mk4/Mk5 before standard firmware 5.6.0 or Edge 6.6.0X
- COLDCARD Q before standard firmware 1.5.0Q or Edge 6.6.0QX
The older Mk2/Mk3 vulnerability appears substantially more severe, but COLDCARD says seeds created on affected newer models should also be replaced unless sufficient private dice entropy was added.
What should users do?
Updating the firmware alone does not secure an existing vulnerable seed.
Install the corrected firmware directly from COLDCARD’s official website.
Generate a completely new seed after updating.
Verify the backup and receiving address on the device.
Send a small test transaction.
Once confirmed, move the remaining funds to the new wallet.
Do not type your seed phrase into a website, “checker,” support chat or computer. Scammers will absolutely use this situation to target frightened users.
A strong, unique BIP-39 passphrase may provide an additional barrier, and seeds created with at least 50 independent private dice rolls may not be vulnerable to this specific issue but COLDCARD still recommends migrating affected seeds unless you are certain.
Self custody eliminates counterparty risk, but it does not eliminate software risk.
Verify your firmware, understand how your seed was created and never rush a wallet migration.
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My friend is right here. This is an embarrassment at the highest level.
How in the actual fuck was this missed by so many people? I still haven’t heard anyone give a good reason why this wasn’t caught 4+ years ago.
To put in perspective how pathetic coldcard is:
Choosing a Bitcoin seed is like playing hide and seek.
If 256 bits of entropy represents hiding something *anywhere in the observable universe*:
-40 bits (Mk3) is a large football stadium
-72 bits (Mk4/5/q) is between the earth and the moon
40 bits of entropy is encoded in ~4 randomly selected BIP39 words; 72 bits requires ~7 randomly selected BIP39 words.
That is how poorly your coins were hidden.
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