A case of breach in the cryptocurrency space has resulted in a significant alarm as a breach linked to Coldcard hardware wallets has triggered blockchain investigators estimating that 1,367.05 Bitcoin (BTC) may have been stolen after attackers allegedly exploited a flaw in the wallet’s seed phrase generation process.
Once the details came out, users shared their experiences where they reportedly lost money. A Canadian entrepreneur Jonathan Goodman said he lost 18.25245043 BTC, valued at approximately Rs 15 crore based on exchange rates.
Users shared accounts on X and Reddit claiming they had lost years’ worth of Bitcoin holdings.
The Canadian entrepreneur said he had believed his holdings were protected because they were stored in cold storage, a method in which private keys are generated and kept offline on a hardware wallet.
The Coldcard device was stored in a safety deposit box, while backup information was secured separately. He said neither the hardware wallet nor the seed phrase had ever been exposed to the internet.That confidence was shattered when he checked his wallet after learning about the reported exploit.
He further alleged that attackers exploited a vulnerability in the code responsible for generating seed phrases on certain Coldcard devices. According to his account, the flaw, which he said originated in code introduced in 2021, allowed hackers to use artificial intelligence-assisted brute-force techniques to recover wallet seed phrases and access users’ funds.
Goodman said he intends to file reports with the police and the Ontario Securities Commission, although he does not expect the funds to be recovered.
According to an analysis by CoinDCX Research Team, a popular American personality, Jim Cramer plans to dump his Bitcoin, warns Quantum will crack it soon. Besides, Tom Lee stakes another 150,120 ETH, bringing its total staked holdings to 5,067,309. Ondo perps has more recorded more than $6 million in cumulative trading volume. It has also hit some $75M in open interest and is officially a top-5 perps trading platform. As per on chain data, NEAR Protocol’s stablecoin supply has witnessed nearly 98% jump over the past week, reaching close to $128M. In the meantime, Cardano’s market cap has surged over 24% over the past week, which usually occurs when the holder trend has shown an increased level of FUD.