Galaxy Research: Bitcoin losses related to the Coldcard vulnerability have risen to $70 million.

According to Odaily Planet Daily, Galaxy Research reported on Friday that over 1,000 BTC, worth approximately $70 million, were transferred from nearly 1,200 addresses. These transactions are believed to be related to a vulnerability affecting Coldcard hardware wallets. This comes after Coldcard maker Coinkite issued a warning on Thursday about a persistent issue with mnemonic phrases generated by Coldcard Mk3 devices. Out of caution, the company warned all users of Mk3 devices with firmware version 4.0.1 or later (released in March 2021) that their funds might be at risk. Coinkite subsequently expanded its warning to include some Mk4, Mk5, and Coldcard Q firmware versions and released an emergency firmware update for all affected models. Coinkite CEO Rodolfo Novak (aka NVK) apologized on Friday, stating that the company takes "full responsibility" for the firmware vulnerability and acknowledged that its internal review process failed to detect the problem. Novak also stated that the vulnerability may have been discovered using artificial intelligence, calling the incident a "sobering reality of the new AI paradigm." He warned that AI-assisted code review could uncover potential vulnerabilities faster than experienced security experts, and also make it easier for attackers to exploit weaknesses in publicly available code.