Coinkite Warns Coldcard Mk3 Users to Migrate Funds Amid 594 BTC Consolidation

Coinkite urges Coldcard Mk3 users to migrate funds due to potential seed phrase vulnerabilities. Meanwhile, 594.48 BTC was consolidated in a suspicious single-signature transfer.

Woofun AI reports that Canadian hardware manufacturer Coinkite has advised Coldcard Mk3 users to migrate funds from wallets using seed phrases generated by firmware version 4.0.1 and later. The warning extends to version 5.0.3, the final release for the Mk3 model, while Mk4, Q, and Mk5 devices remain unaffected. Users are instructed to generate new seed phrases on secure devices, verify backups, and conduct test transactions before moving remaining assets. A formal technical review is pending.

Bitcoin security experts are analyzing a centralized transfer of 594.48 BTC, valued at approximately $38.3 million, involving single-signature addresses. AnchorWatch CEO Rob Hamilton noted that 1,324 unspent transaction outputs were moved via 500 transactions within a three-block window, with 562 BTC subsequently consolidated. Wizardsardine CEO Kevin Loaec suggested a low-entropy random number generator may be the cause, though this hypothesis remains unconfirmed, leaving partially drained wallets at risk.