Kraken’s chief security officer said the Coldcard vulnerability exposes a broader weakness in hardware wallet testing.

A hardware wallet randomness bug turned “impossible to guess” seeds into guessable ones, and $38 million is already gone.

Coinkite disclosed a Coldcard firmware flaw dating to 2021 that let an attacker drain 594 BTC worth $38M from nearly 500 wallets in under 30

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