Coinkite hack: Fuck you NVK. The brand is cooked. Shoot coldcards. Self-custody is dead.
Liquid hack: How dare the hacker do this. Poor Blockstream. Only got 85% back. So sad.
Fascinating behavior
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.