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UPDATE: Block's Max Guise says the team traced the Coldcard wallet drains to a random-number-generation flaw affecting Mk2 through Mk5 devices. Affected users are urged to move funds to a new, unaffected wallet as soon as safely possible.

Block's Max Guise said the team identified a random-number‑generation flaw in Coldcard Mk2‑Mk5 devices that allowed funds to be drained, and users are being asked to move their assets to a safe wallet immediately.

Published:

Updated:

What happened

Block’s Max Guise said the team identified a random-number‑generation flaw in Coldcard Mk2‑Mk5 devices that allowed funds to be drained, and users are being asked to move their assets to a safe wallet immediately.

Confirmed

Global impact / market context

A security flaw in a widely used hardware wallet can cause direct financial losses for investors and raise doubts about the safety of offline crypto storage, prompting a shift to other solutions.

Confirmed

Coldcard is a popular hardware wallet used by crypto investors to store private keys offline. A flaw that lets attackers drain funds can quickly spread concern across the broader cryptocurrency security market.

Confirmed

What to watch

  1. Whether Coldcard releases a patched firmware or new hardware, which will determine how quickly users can secure their holdings. Analyst inference
  2. The speed at which affected users transfer funds, influencing short‑term demand for alternative wallets and related services. Analyst inference
  3. Regulatory responses or guidance on hardware‑wallet security that could affect industry standards and investor confidence. Analyst inference

Evidence