Coldcard flaw raises $116M self-custody risk

• A reported flaw in Coldcard hardware wallets has raised concerns about self-custody security.
• Researchers said the issue could affect wallets linked to about US$116 million in Bitcoin.
• The report has renewed attention on hardware wallet security and user protection.

A reported flaw in Coldcard hardware wallets has raised concerns about self-custody security, with researchers saying wallets linked to about US$116 million in Bitcoin (CRYPTO:BTC) could be affected.

The issue was identified by security researchers who said the vulnerability could expose some users to additional risk.

The report has renewed attention on the security of hardware wallets used for Bitcoin self-custody.

Researchers said the flaw relates to how certain wallet security processes operate under specific conditions.

The report said the affected wallets could represent about US$116 million in Bitcoin holdings.

Coldcard hardware wallets are widely used by Bitcoin holders who manage their own private keys and self-custody arrangements.

The reported vulnerability highlights the importance of hardware wallet security, software updates, and independent security research.