A software bug in popular hardware wallet Coldcard that led to the theft to this point of nearly 600 bitcoin worth roughly $38 million is prompting questions about security and whether managing private keys has become too risky for everyday investors.

Bitcoin security experts said the unexplained $38 million wallet drain may involve flawed seed-generation entropy, though the cause and any Coldcard link remain unconfirmed.

Coinkite warns Coldcard Mk3 owners of a seed generation risk after reports of $38 million in bitcoin leaving old wallets.

Over $70 million in Bitcoin has been pinched. Coldcard has since urged its users to take precautions.