Why it matters: A hardware wallet is supposed to solve one problem: keep your Bitcoin keys somewhere no attacker can reach them. This week showed what happens when the flaw sits inside the wallet itself. A firmware bug that's been shipping in Coldcard devices since 2021 let an attacker guess supposedly random seed phrases from the outside, no physical access, no phishing, no malware required, and drain funds from thousands of addresses. The running total is already past $88 million, and it's still climbing.
The recovery involved 3.5 trillion password attempts
WTF?! It's quite rare that we hear positive stories about AI, but at least one person is thankful for the proliferation of LLMs. A Bitcoin owner who forgot their wallet password 11 years ago just used Claude AI to access their cryptocurrency – all $400,000 worth.
In brief: James Howells, the man who has spent more than a decade trying to recover a hard drive containing more than $750 million worth of Bitcoin from a landfill, is not giving up on his quest for fortune. After a judge threw out his request to dig at the site last month, Howells is now considering buying the facility, which is due to be closed.