Coldcard Releases Emergency Firmware Update After $114 Million Bitcoin Theft

Hardware wallet maker Coinkite ships critical security patch following massive cryptocurrency loss, warning users that compromised wallets remain at risk despite the update.

Coldcard has released an emergency firmware update in response to a security vulnerability that resulted in the theft of $114 million worth of bitcoin from users. The hardware wallet manufacturer, Coinkite, conducted an intensive three-week security review that uncovered additional bugs unrelated to the original flaw, with AI-assisted analysis helping identify previously undetected issues.

Despite the comprehensive firmware patch, Coinkite has issued a stark warning to affected users: updating the firmware alone will not secure wallets that have already been compromised. The company is strongly urging all Coldcard users to generate entirely new seed phrases as the only way to ensure their funds are protected from the vulnerability that enabled the massive theft.

The incident highlights ongoing security challenges in the cryptocurrency hardware wallet industry, where users depend on these devices to safeguard their digital assets offline. Security experts note that even well-established wallet manufacturers can harbor critical vulnerabilities that remain undetected until exploited. The use of artificial intelligence in code review represents a new approach to identifying security flaws, though this breach demonstrates that no system is entirely foolproof.

Coldcard has not disclosed specific technical details about the vulnerability to prevent copycat attacks while users transition to new wallet configurations. The $114 million loss ranks among the largest hardware wallet-related thefts in cryptocurrency history, underscoring the importance of regular security audits and prompt user response to manufacturer security advisories.