Flawed Security, Fleeced Investors: The $100 Million Bitcoin Heist A software bug in Coldcard hardware wallets has exposed a gaping hole in cryptocurrency security, leaving thousands of investors vulnerable to theft and hackers richer by over $100 million.
A staggering 1,596 bitcoins, valued at around $102 million as of Tuesday, have been stolen from more than 7,300 crypto wallets across three confirmed waves of theft and 14 smaller incidents.
The bug is a firmware flaw that affects the randomness of seed phrases generated by Coldcard devices. This weakness allowed hackers to systematically guess those phrases and drain crypto wallets with ease.