Security· ★★★★· bearish·

AI helps find critical vulnerability in Coldcard Mark III wallets

  • An AI model helped find a possible entropy flaw in the 2021 Coldcard Mark III
  • About 1,000 BTC were moved in late July from wallets of this type
  • Entropy may have dropped to ~32 bits instead of 256, making key guessing easier
  • Multisig and multiple devices reduce the risk of total loss of funds
Why it matters: The incident shows that weak key generation in hardware wallets can lead to theft of funds, and AI accelerates the discovery of such vulnerabilities.
Source: DiarioBitcoin