A low-cost, AI-assisted test has reportedly resurfaced the software flaw tied to a multimillion-dollar Bitcoin theft, drawing fresh attention to an old wallet vulnerability rather than uncovering an entirely new one. The rediscovered Bitcoin theft bug traces back to a weakness in Coldcard hardware wallet firmware.
A low-cost, AI-assisted test has reportedly resurfaced the software flaw tied to a multimillion-dollar Bitcoin theft, drawing fresh attention to an old wallet vulnerability rather than uncovering an entirely new one. The rediscovered Bitcoin theft bug traces back to a weakness in Coldcard hardware wallet firmware.
The finding was shared publicly by investor Haseeb Qureshi, who pointed to the exploit path on X. His post frames the result as a rediscovery of a known flaw, not a fresh zero-day. For related coverage, see SEC Pauses Nasdaq's Bitcoin Index Options After CME Challenge.
The core claim is narrow: an inexpensive, AI-assisted testing approach surfaced a bug that was already documented, rather than inventing a novel exploit. That distinction matters, because it points to an old weakness remaining testable, not a new break in Bitcoin itself. For related coverage, see Bitcoin ETF Inflows Hit 3-Week High as BTC Drops Below $64K.
The “low-cost” framing is the notable part. It suggests the barrier to re-examining this class of flaw is low, meaning a modest, automated setup can retrace a vulnerability that once required specialized effort.
WHAT TO KNOW
The vulnerability was disclosed by Block, which detailed the Coldcard hardware wallet flaw through its security team. The disclosure connects the weakness to real losses affecting self-custody users.
Technically, the problem is a predictable RNG fallback and a 32-bit reseed in Coldcard firmware, according to Block’s engineering write-up. Weak randomness can narrow the space an attacker must search, making it possible to guess the keys that secure a wallet, an issue also covered in reporting that the Coldcard bug let hackers guess wallet keys.
On the scale of losses, CoinDesk reported the exploit at $38 million “so far”, a figure the outlet flagged as still developing. Because the totals remain unsettled, the loss should be treated as an evolving estimate rather than a final, confirmed number.
Resurfacing an old bug matters because it signals that a documented Bitcoin-related weakness is still reachable with modern tooling. The low cost of the test lowers the bar for anyone probing whether legacy firmware flaws remain exploitable.
For wallet developers, exchanges, and self-custody holders, the practical takeaway is remediation discipline: keeping firmware current and confirming that patches addressing the RNG issue are applied. Block’s disclosure and engineering breakdown are the primary references for what needs to be fixed.
The episode also feeds a broader question the coverage raised, whether repeated self-custody failures push some investors toward regulated products, a theme reflected in the market’s continued interest in vehicles like Morgan Stanley’s strong Bitcoin ETF debut and the drive behind its low-cost ETF launch.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
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