Coldcard hack pressures Bitcoin price again

Just as US President Trump announces that new peace talks between Iran and the United States are in the offing and the price of oil drops, Bitcoin is facing a new hack. A serious software flaw in the popular Coldcard hardware wallet has led to one of the largest hardware wallet thefts in years.

Hardware wallets

Due to a software security vulnerability, cybercriminals have already managed to steal more than 1,367 bitcoins, worth approximately $86 million. The total value involved in the hack is expected to far exceed $100 million though.

The attack, which originated in Canada and the United States, affects thousands of users who had stored their cryptocurrencies offline specifically to ensure maximum protection.

Hardware wallets, long considered one of the safest ways to store Bitcoin, turned into a costly nightmare for some users. Criminals managed to locate a database containing the passwords needed to recover seed phrases, allowing them to simply transfer the Bitcoin to their own accounts.

Users checking their hardware wallets would see their funds being transferred away, unable to do anything to stop it.

The hack once again raises questions about the security of hardware wallets and the risks posed by software flaws in systems designed to protect digital currencies.