A Coldcard firmware flaw weakened bitcoin seeds, exposing up to $70 million and forcing users to move funds.

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 recommends that Mk3 users create a strong, unique BIP-39 passphrase on the device and move funds to the resulting wallet.

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