Coldcard Weak Random Number Security Incident: Passphrase-Protected Mnemonics Can Prevent Attack

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Coldcard’s weak random number vulnerability enabled attackers to steal 594.48 BTC, worth $38.2 million, from approximately 500 wallets. Mnemonic phrases protected by a passphrase remain secure. A passphrase is a separate, dedicated password for the seed phrase, supported by major hardware wallets. BTC prices continue to face pressure as the incident underscores risks in wallet security. Traders are also monitoring altcoins amid shifting market sentiment.

Odaily Planet Daily reports: Yu Xian of SlowMist stated on X that in the ColdCard hardware wallet weak randomness security incident, if a passphrase was used with the mnemonic phrase, users could avoid this attack. A passphrase is not the wallet’s unlock PIN code, but a password specifically set for the mnemonic phrase, a feature supported by all major hardware wallets.

Previously, according to Lookonchain monitoring, approximately 500 wallets had their funds transferred to the address bc1qnk due to a vulnerability in Coldcard wallets, involving a total of 594.48 BTC, worth approximately $38.2 million.

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