594 Bitcoin Heist Shock in Hardware Wallet: Urgent Warning Following Critical Security Vulnerability

Cryptocurrency hardware wallet manufacturer Coinkite has issued an urgent warning regarding a security vulnerability detected in Coldcard Mk3 models, stating that users’ funds may be at risk.

Coinkite, the manufacturer of Coldcard—one of the popular hardware wallets for Bitcoin security—has shared a critical security notice for one of its older models, the Mk3. The company stated that wallet recovery phrases (seed phrases) generated on devices using version 4.0.1 (released in March 2021) and subsequent firmware updates may be compromised. This warning follows reports of a massive theft involving approximately 594.5 Bitcoin (BTC).

Critical Security Warning for Coldcard Mk3 Users

Research indicates that 594.5 Bitcoin, valued at approximately $38.3 million, was drained from 500 different addresses in a coordinated manner. Experts believe this may stem from weak randomness—technically known as entropy—used during wallet creation on Coldcard Mk3 devices. Users who created wallets between 2021 and 2023 without taking additional security measures are especially advised to move their assets to a new and secure address as soon as possible. Some analyses suggest the total stolen amount could reach up to 1,082 Bitcoin.

Coinkite recommends that users create a strong BIP-39 passphrase to protect against risk or migrate their assets to newer models like the Mk4 or Mk5. As an advanced option, it is also noted that a new key can be created by manually entering data at least 99 times using the physical dice-roll method, rather than relying on the device’s automatic random number generator. In the face of such complex vulnerabilities in the digital world, as reminded by the warning signs in the image, it is of great importance for users to implement security protocols quickly but without panicking.