Bitcoin News

Story: Coldcard Breach Triggers 233,000 Bitcoin Move as AI Exposes 5-Year Code Flaw

By Julie Binoche

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Ledger and Trezor Users Scramble for Multisig Cover. Ledger and Trezor users didn't wait around. Spooked by what happened to Coldcard, many started…

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A 5-Year-Old Flaw Found by AI. Here's where it gets uncomfortable. Ledger's CTO, Charles Guillemet, said the flaw in Coldcard's…

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What This Means for Hardware Wallet Security. The Coldcard incident doesn't mean hardware wallets are finished. It's more complicated than that.

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A security breach at Coldcard sent shockwaves through the Bitcoin world. Around 233,000 bitcoins — worth roughly $15 billion — shifted hands almost immediately after the wallet…

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That's not a small number. These weren't day traders panicking over a price dip. The bitcoins involved had been sitting still for over 155 days, which puts them squarely in the…

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Ledger and Trezor users didn't wait around. Spooked by what happened to Coldcard, many started migrating toward multisig setups, basically splitting custody across multiple keys…

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Neuman's read on all of this was pretty direct. He said the movement of funds actually shows that distributed self-custody systems work — they're a protective layer, not a weak…

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Still, the scale of the reaction says something about how rattled the community got.

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Here's where it gets uncomfortable. Ledger's CTO, Charles Guillemet, said the flaw in Coldcard's wallets had been sitting in public code for five years. Five years.

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Ian Rogers of Ledger weighed in on what that means for the broader threat picture. His point was that AI doesn't create new vulnerabilities — it finds existing ones faster.

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See also: Bitcoin Policy Institute Pushes AI Giants to Give Bitcoin Coders First Look at Frontier Models

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That's the uncomfortable math now facing every open-source project in the Bitcoin ecosystem.

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Guillemet's warning was clear: companies need to audit sensitive code before attackers do. Proactive review, not reactive patching.

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The Coldcard incident doesn't mean hardware wallets are finished. It's more complicated than that. No security setup is fully bulletproof — that's been true forever in this space.

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Diversifying wallet manufacturers matters. Using multisig matters. Regular, rigorous code audits matter — maybe more than anything else right now.

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