Coldcard Weak RNG Flaw: Using a Passphrase With Your Seed Phrase Could Have Blocked the Attack
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Reports of a ColdCard hardware wallet weak-randomness incident and related thefts (about 594.48 BTC) elevate concerns around self-custody operational risk. While guidance notes passphrase-protected mnemonics could mitigate the specific attack vector, the episode may increase near-term caution around hardware wallet security, potentially driving temporary risk-off behavior among holders and heightened scrutiny of wallet vendors and user security practices.
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Odaily Planet Daily reported that SlowMist founder Yu Xian said on X that users affected by the Coldcard hardware wallet weak-randomness incident could have avoided the attack if they had enabled a passphrase alongside their mnemonic phrase. He noted that a passphrase is separate from the device's unlock PIN and is an additional password set specifically for the seed phrase, a feature supported across major hardware wallets. Earlier, Lookonchain data showed roughly 500 wallets had funds moved to address bc1qnk following the Coldcard vulnerability, totaling 594.48 BTC, valued at about $38.2 million.
