Coldcard issues Mk3 warning as experts examine $38M Bitcoin wallet drain
Coinkite urged Coldcard Mk3 users to migrate funds after identifying a potential seed-generation risk, as Bitcoin security experts separately examine an unexplained $38 million wallet drain.
Coinkite, the company behind the Coldcard hardware wallet, has issued an urgent warning to users of its Mk3 model, urging them to migrate their funds immediately after identifying a potential vulnerability in the device's seed-generation process. The advisory comes as Bitcoin security researchers separately investigate an unexplained drain of approximately $38 million worth of Bitcoin, involving around 594 BTC swept from affected wallets under circumstances that remain unclear.
The Coldcard Mk3 is an older generation of the popular air-gapped Bitcoin signing device, widely regarded as one of the more security-focused options available to self-custody users. Coinkite has not disclosed full technical details of the seed-generation risk, a common practice intended to limit exploitation before users can act. Hardware wallet vulnerabilities, while relatively rare, have historically prompted significant concern within the Bitcoin community given the irreversible nature of on-chain losses.
The simultaneous emergence of the $38 million wallet drain has heightened anxiety across the self-custody space, as experts work to determine whether the two incidents are connected or coincidental. The episode underscores persistent risks associated with long-term Bitcoin storage and raises broader questions about the security lifecycle of aging hardware wallet models.
Observers will be watching for further technical disclosures from Coinkite, as well as any findings from blockchain analysts examining the wallet drain. Users still holding funds on Coldcard Mk3 devices are advised to consult official Coinkite guidance without delay.
Source: Cointelegraph
