Coinkite has confirmed an entropy generation flaw in Coldcard devices. A firmware error prevented the hardware from using its random number generator, producing predictable recovery phrases. The outcome: 594 BTC — approximately USD 38 million — drained from around 500 wallets in 25 minutes. On-chain analysis indicates a further 488 BTC was taken earlier through the same method. Affected users are advised to generate a new seed and migrate their funds. The case highlights a point rarely discussed: physical isolation protects against remote attacks, but not against a failure within the device itself. At X4T, funds are held under institutional custody with Fireblocks, with distributed keys and continuous review of the infrastructure. https://t.co/928tzMeAuY #X4T #Bitcoin #Custody #Security #Crypto #Paraguay
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