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Hackers steal over $130M by exploiting bug in offline hardware wallets
Hackers have stolen over $130 million from users of Coldcard offline hardware wallets by exploiting a vulnerability in seed phrase generation. This incident marks a significant breach in cryptocurrency security, with many victims expressing frustration despite following safety measures. The incidents are part of a broader trend, with over 200 hacks reported this year in the crypto space, totaling losses over $950 million.
Key points
- Hackers target Coldcard hardware wallet users, exploiting a bug in seed phrase generation.
- The thefts amount to over $130 million since the onset of the hacks.
- At least a dozen different hackers are involved, indicating a coordinated effort.
- Victims like Jonathan Goodman report significant losses while believing they took adequate security measures.
- Coinkite, the manufacturer of Coldcard, has advised users to update their devices and migrate to new seed phrases to mitigate risks.
Why it matters
- The attack highlights the ongoing risks in the cryptocurrency sector, with more than 200 hacks reported in 2023 alone.
- This incident connects to the broader trend of increasing vulnerabilities in blockchain and crypto technology.
- The situation emphasizes the need for improved security measures in 'cold' storage solutions as more users adopt cryptocurrencies.
The theft from Coldcard wallet users underscores a critical security issue in cryptocurrency technology, demonstrating that even the safest methods can be compromised, further amplifying calls for better security practices in the industry.