Coldcard flaw linked to 594 Bitcoin theft

• Coldcard warned users after 594 Bitcoin (CRYPTO:BTC) was stolen from wallets linked to compromised Coldcard Mk3 firmware.
• The incident highlights the security risks posed by unofficial firmware rather than a flaw in current Coldcard devices.
• Coldcard is urging affected users to migrate funds and verify firmware authenticity to protect their assets.

Bitcoin (CRYPTO:BTC) hardware wallet maker Coldcard has warned users after attackers stole 594 BTC from wallets created using compromised Coldcard Mk3 firmware, highlighting the risks of installing unofficial software.

The theft was traced to wallets initialised with unauthorised firmware rather than a vulnerability in genuine Coldcard hardware, contrasting with concerns that newer devices had been compromised.

Coldcard said wallets created with authentic firmware remain secure and advised users who may have installed unofficial software to generate a new wallet using verified firmware and immediately transfer their Bitcoin.

The warning underscores the importance of verifying firmware before installing updates, as compromised software can expose wallet recovery phrases and enable attackers to steal digital assets.

Coldcard develops hardware wallets designed to keep cryptocurrency private keys offline, reducing exposure to online attacks while relying on users to verify firmware integrity during setup.

The incident adds to a growing number of cryptocurrency thefts involving phishing campaigns, counterfeit software and supply chain attacks rather than direct exploits of hardware wallet security.

At the time of reporting, Bitcoin price was $64,335.36.