Coldcard Flaw Exposes 1,080 BTC Theft, Raises Hardware Wallet Security Concerns

A cryptographic flaw in Coldcard hardware wallets allowed attackers to steal 1,080 BTC without physical access. A 2021 firmware update reduced effective private key combinations to roughly 4 billion, enabling the exploit. The incident raises concerns about hardware wallet security amid fragile market sentiment. The vulnerability affected wallets created under certain conditions after the update.