Hackers Steal Over $100 Million From "Safe" Bitcoin Wallets

You're now currently watching one of the worst crypto disasters in recent memory unfold in real time.And it's targeting the one group of people who actually did everything right.Because hackers have managed to breach cold card and drain almost a hundred million dollars from over 1200 Bitcoin addresses in about 41 minutes.And this is a just massive deal because cold card was supposed to be the gold standard offline hard wallet.And so now you have people wanting answers.Because a hack of this magnitude, it raises a lot of questions.

I mean, this is an offline wallet, meaning it is not connected to the internet at all.And therefore it's supposed to be extremely secure.So how did the hackers manage to get the keys And while a security advisory from Block revealed that there was a massive coding mistake in certain cold card firmware versions.And so this made it so that the wallet's generated recovery phrases were predictable.And so the attackers didn't need physical access to your device.They literally mapped out the keys and emptied the vaults remotely.

And the real salt in the wound for people who use CoinKite's wallet, updating your firmware or moving the Bitcoin to another wallet will not save your funds if your seed phrase was created on affected software.

Weakness stays attached to that recovery phrase.So you can think of it like a password.Updating your computer, it won't matter if hackers still know your unupdated password.And so you've got users being urged to make a brand new recovery phrase after updating or risk all your Bitcoin.And while you had CoinKite CEO, Rodolfo Novak, issuing a public apology saying he's devastated and taking full accountability.it is not as full as a lot of users would want.

Because in his statement, you had him saying that the company would release a full technical report over how this happened and help users to pursue police reports, insurance claims, or their own investigations.But getting your money back from the people you trusted, apparently that's a bridge too far.And then also notably, they blamed AI, claiming that AI -assisted code review can find bugs in code that would take humans forever to figure out.And while they're not alone, this has been a growing trend and it's raised a lot of red flags about security in essentially every coded system.So you've got this fear out there that this could be the new normal for a while.