Coldcard flaw drives Bitcoin new addresses above 330,000

Bitcoin new addresses climbed from about 260,000 to more than 330,000 last week as users moved funds after the Coldcard hardware wallet vulnerability, reversing a decline that had persisted through most of 2026, The Block reported. The issue has cost Coinkite wallet users at least 1,816 BTC, worth about $116 million, across four waves of attacks since July 30. The flaw traces back to a 2021 firmware defect that used a weaker software random number generator when creating mnemonic phrases (wallet recovery words) instead of the device's built-in hardware entropy source (dedicated randomness generator), allowing attackers to brute-force wallets created offline. Coinkite has urged users who generated wallets from March 2021 until the security patch was released to move funds to new wallets.

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