COLDCARD HACK $90,000,000 GONE

@defisenpai

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SoundTikTok sound · original sound - pxltragized_ofc

Promoted product

Coldcard

COLDCARD is a Bitcoin-only hardware wallet by Coinkite with air-gapped signing options, dual secure elements, and verifiable open-source firmware.

2 videos2 creators

Why it worked

The video leverages a high-stakes, fear-inducing event (a major crypto hack) to capture attention, then provides a technical explanation that is made accessible through AI's role in discovery, creating a compelling narrative about security and investment.

Summary

A significant hack has occurred involving the Coldcard Bitcoin hardware wallet, resulting in the theft of over 1300 Bitcoin across 4,500 addresses due to a flaw in its random number generation. This vulnerability was reportedly discovered by an AI model within minutes, highlighting the unforgiving nature of cryptocurrency security despite best practices.

Structure

1Coldcard hack and massive Bitcoin theft
2Explanation of the seed phrase vulnerability
3AI discovers the vulnerability quickly

Original caption

Coldcard vulnerability leads to millions stolen. Devastating for the bitcoin community. #investing #coldcard #bitcoin #hardwarewallet #cryptonews

More from @defisenpai

Product placement

Coldcard (hardware wallet): Acts - stores cryptocurrency private keys securely. Its interface is operated by users to manage funds. The video discusses a hack of this product, implying its function. Removing it would change the video's topic. Blackrock (investment firm): Appears - a logo is shown as part of a discussion about Bitcoin and Ethereum ETFs. It does not act in the video. Removing it would not change what happens in the video. Bitcoin (cryptocurrency): Appears - shown as a coin and discussed as the subject of the hack and investment. It does not act in the video. Removing it would change the video's topic. Ethereum (cryptocurrency): Appears - mentioned as an investment vehicle. It does not act in the video. Removing it would not change what happens in the video.

On-screen text

COLDCARD HACK $90,000,000 GONE is for community hardware called just COLDCARD Don't Trust. Verify. Version 1.0.0.Q 2024-03-10 ECC CALCULATOR 13 Bitcoin Seed Entropy Sweep: 4,500 Addresses Drained Across Three Waves Source: CipherTrace Research - March 2023 VICTIM ADDRESSED COLDFUNDED BTC CURRENTLY LOCATED Phase 1: 1,148 addresses 1,000.00 BTC 1,000.00 BTC Phase 2: 1,475 addresses 1,000.00 BTC 1,000.00 BTC Phase 3: 1,877 addresses 1,000.00 BTC 1,000.00 BTC COLDCARD EDITION 130.00 BTC 20.00 BTC 20 Claude 20 What Insufficient Entropy Looks Like Secure Seed (128 bits) ocean tiger silver dance pigeon melody crystal rocket amber jungle violin sunset 2^128 = 340 Undecillion Low-Entropy Seed garden mirror silent canyon river melody crystal rocket amber jungle violin sunset ~1 Trillion possibilities Both look normal. Only one is truly random. Blackrock Ethereum ibit ETH

Transcript

This is devastating for the Bitcoin community. A Bitcoin hardware wallet called Coldcard was just hacked and over 1300 Bitcoin have been stolen across 4,500 addresses. There was a flaw in their code that when they generated a new seed phrase to create a new wallet, it wasn't using enough randomness. That dramatically reduced the amount of possible seed phrase combinations it allowed attackers to search for the correct ones and drain those wallets. It's extremely unfortunate because these people followed all the best practices and still lost everything. A user later plugged Coldcard's code into Claude and within 20 minutes of thinking, no human input beyond first prompt, to find vulnerabilities, it managed to find that same vulnerability. I love what Bitcoin represents: decentralization, ownership, financial freedom, and scarcity. But it can be brutally unforgiving. The only silver lining is that Coldcard is just not that big of a product. I've never heard of it before this weekend. I think it's much more practical at this point to buy Blackrock Bitcoin and Ethereum ETFs, IBIT and ETH, and just let the industry professionals handle the custodianship problem.