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Coldcard issues Mk3 warning as $38M Bitcoin wallet drain draws expert scrutiny

7/31/2026

Hardware wallet security is under examination across the Bitcoin custody sector.

Coinkite, the maker of the Coldcard signing device, has urged all Mk3 model users to migrate their funds after identifying a potential risk in seed generation.

Bitcoin security experts are separately investigating an unexplained $38 million wallet drain that has no publicly attributed cause. What Coinkite identified on the Mk3 The affected product is the Coldcard Mk3.

Coinkite's concern is a potential flaw in how the device generates seed phrases. A seed phrase is the master credential for a Bitcoin wallet: whoever can reproduce it controls the funds, completely and irreversibly.

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