Coinkite has issued a security advisory for Coldcard Mk3 users. If you generated a seed on a Mk3 running firmware 4.0.1 (March 2021) or later, your funds may be at risk. The issue appears to be related to the device's random number generator during seed creation. Mk4, Q, and Mk5 are not affected. If you used a BIP-39 passphrase on top of your Mk3 seed, Coinkite says the risk is minimal. If you didn't, you should migrate your funds to a new seed generated on an unaffected device. Don't rush. Send a test transaction first, verify the new wallet, then move the rest. More details from Coinkite's investigation are coming. Full advisory:

COINKITE WARNS COLDCARD MK3 USERS OF POTENTIAL FUND RISK Coinkite is urging anyone who generated a seed on a COLDCARD Mk3 running firmware version 4.0.1 (released March 2021) or later to treat their funds as potentially at risk. The company says the vulnerability affects all Mk3 firmware through version 5.0.3, the final release for the device. Based on its initial analysis, Coinkite says Mk4, Q, and Mk5 devices are not affected. Users who protected their Mk3 wallet with a BIP-39 passphrase face minimal risk, according to the company. Coinkite recommends migrating funds to a newly generated seed on an unaffected device, or, if necessary, using a strong BIP-39 passphrase or a dice-only seed as an interim measure. The company says its investigation is ongoing and a full technical review will follow.

📍 PUBKEY NYC: "This is not NOT unique to Coinkite that they might make that mistake..." "...but the responsibility they have is to get as many eyes on this as they can. And they didn't." @TheBlueMatt

The Onchain Security Roundup tracked three incidents last week with $122M+ in reported losses Coldcard / Coinkite: ~$114M. A five-year-old firmware defect in Coldcard hardware wallets routed seed generation through a weak software randomiser (instead of the hardware RNG), allowing an attacker to reconstruct victims' private keys entirely offline and sweep their bitcoin. There have been 3 confirmed waves of losses with a potential 4th one ongoing. Coinkite published an advisory on July 30 and shipped emergency firmware on July 31, but installing it doesn't repair a previously generated seed. CryptoDAO PRO (BNB Chain): ~$7.56M–$8.2M. The function that pays out PRO rewards was open for anyone to call, with no permission check and no limits. The attacker called it repeatedly, dumping 2.8M PRO into PancakeSwap and driving the price down 32%. @HypernativeLabs identifies the fault with CryptoDAO's own distributor contract rather than PancakeSwap. LULA (BNB Chain): ~$578.1K. LULA's token contract had a privileged function that could pull tokens out of its own PancakeSwap trading pool, skipping the usual transfer checks, and then tell the pool to treat the reduced balance as correct. The attacker staged helper contracts 12 days earlier, then used a $237M flash loan to load the pool with USDT, drained the LULA side until each remaining token looked enormously valuable, and sold a small amount back at the skewed rate. Onchain risk expands beyond smart contracts to firmware and signer design around the protocol layer Key generation, privileged token mechanics, and operational dependencies can all turn into loss vectors Evaluating all of the different risks your capital is exposed to can be a difficult task, but Nexus Mutual is here to help You’re Covered with Nexus Mutual