Dogecoin (DOGE) community figure warns of Coldcard incident... "Move funds immediately"

▲ Bitcoin (BTC), Cryptocurrency Wallet, Hacking/AI Generated Image

1,367.05 BTC was stolen due to a vulnerability in the Coldcard hardware wallet. An urgent warning has been issued to users to move their funds immediately.

According to U.Today on August 2 (local time), Mishaboar, a Dogecoin (DOGE) community figure, urged all users who have ever used Coldcard to immediately transfer their funds to a new wallet. He emphasized that existing Coldcard seed phrases should not be reused, and a new seed phrase should be generated in the new wallet.

Mishaboar said, “If you have ever used a Coldcard device, move your funds to a new wallet immediately.” He added, “Never reuse your Coldcard seed phrase” and recommended setting an additional separate password. Coldcard also issued an urgent notice to users to update their devices, create new seed phrases, and then transfer funds.

A warning was also issued not to enter seed phrases into a computer. Mishaboar stated that seed phrases should be stored offline, and at least one backup copy should be kept in a different location. Entering a seed phrase into an internet-connected device increases the risk of exposure to malware or hacking.

The vulnerability in question was discovered in Coldcard firmware distributed in March 2021. Attackers reproduced private keys generated by insecure software random numbers, stealing Bitcoin (BTC) from thousands of wallets. Galaxy Research analyzed that 4,585 addresses were affected in three attacks. The stolen amount is 1,367.05 BTC, valued at approximately $88.6 million at the time.

Alex Thorn, Head of Research at Galaxy Research, warned that attacks related to the vulnerability are ongoing. The Bitcoin stolen in the three confirmed attacks is still in the attacker's addresses. Bitcoin in the affected wallets had not moved for an average of 3.18 years before the theft, with a median of 3.55 years. This means long-term holders were the main targets.

[Article Key Summary]

-1,367.05 BTC was stolen in three attacks exploiting the Coldcard vulnerability.

-Coldcard users should discard their existing seed phrases and create new wallets and seed phrases.

-4,585 addresses were affected, and the value of the stolen Bitcoin is approximately $88.6 million.

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