Sparrow Wallet 2.5.4 Released with AI-Driven Security Fixes

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Sparrow Wallet 2.5.4 is now live, addressing a potential security vulnerability through AI and crypto news innovations. The update, powered by AI-assisted code review, patches multiple issues. Key fixes include validating Electrum server transactions, enforcing stricter BitBox02 firmware requirements (9.4.0+), preventing DNS leaks, and masking credentials in logs. Developer Craig Raw stated no exploitation has been observed and user funds are safe. All users are advised to upgrade.
ME AI messages, Sparrow Wallet has released version 2.5.4 with a privacy-focused update. Developer Craig Raw stated that this update was driven by AI-assisted code review, with most fixes originating from this review. The review was prompted by the previous seed generation vulnerability exploit on Coldcard and the release of unrestricted AI models in China, which significantly enhanced the ability to search for vulnerabilities in large codebases. Key updates include: validating the legitimacy of transactions returned by Electrum servers, strengthening security requirements for BitBox02 hardware wallets (firmware version 9.4.0 or higher required), fixing local DNS leaks, and hiding sensitive credentials in debug logs. Raw noted that no signs of exploitation have been found and user funds are not at risk, but still recommends all users update as soon as possible. (Source: ChainCatcher)
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