The ColdCard Exploit: Is Self Custody Finished?

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A firmware bug made ColdCard hardware wallets generate weak, guessable seed phrases for 5 years. As of August 3, 2026, researchers estimate roughly 1,816 BTC (about $114 million) swept from more than 5,200 wallets across 4 waves. The sweeping is still going.

If you generated a seed phrase on any ColdCard — Mk2, Mk3, Mk4, Mk5 or Q — updating the firmware does not fix it. A seed made with weak randomness stays weak forever, on any device. The only fix is a brand new seed and a migration. Coinkite also states that seeds built from 50+ private dice rolls are not at risk from this bug.

If you are not on a ColdCard: you are fine and there is nothing you need to do.

#Bitcoin #ColdCard #SelfCustody #HardwareWallet #Coinkite #SeedPhrase #BitcoinSecurity #ColdStorage #NotYourKeysNotYourCoins #CryptoSecurity #BitcoinNews #Trezor #OneKey #BlockstreamJade #BTC

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