Coldcard shipped new firmware after a flaw in its hardware wallet was tied to a $114 million bitcoin theft. The company’s three-week review found additional bugs unrelated to the original exploit, with AI-assisted tools used to help identify weaknesses. Coldcard warns that updating firmware can close a software vulnerability but cannot recover a seed phrase or private key already exposed. Users whose wallets may have been compromised should treat the device as untrusted, create a new seed on a clean device and move their funds. The incident highlights the security risks of rapid software development in crypto infrastructure, as well as the growing use of AI in code review and operational tooling across Web3 projects.