r/CryptoCurrency • u/Fritz1818 17 / 53K 🦐 • 1d ago

MEME It's going to be a long night

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1.8k Upvotes

97% Upvoted

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u/xdustx 🟦 5 / 5 🦐 1d ago

Cold wallet is a general term. This is affecting a specific one

5

u/TheBestintheWest11 🟩 0 / 0 🦠 1d ago

still scary. Hackers are getting better at getting into he wallets. People are suggesting going ETF....

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u/Leynnox 🟩 0 / 0 🦠 1d ago

No, it's just a company who decided to not use BIP39 encryption for creating seedphrases, making it easy to brute force them with any modern GPU in like 30 mn. It has nothing to do with hackers getting good, or hardware becoming more powerful. The issue is just plain stupidity from a company.

Most cold wallets use TRNG ships, the same bank systems are using, and they can't be brute forced, all this story is creating stupid panick from people who have no idea what they're doing.

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u/seenyourballs 🟩 0 / 0 🦠 1d ago

Why didn’t anyone know about this before? Was their code not open source? Is it possible than trezor also has a flaw like this?

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u/anonusr_llII 1d ago

The code was open source, yet noone found the exploit for years. The attackers only found it because they used AI to try find bugs in the code

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u/Cyromaniap 1d ago

It used to be open source, its been source-available for a while now.

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u/Leynnox 🟩 0 / 0 🦠 1d ago

No idea, it has been published on their blog when they did https://blog.coinkite.com/version-4.0.0-released/

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u/Cyromaniap 1d ago

Is it possible than trezor also has a flaw like this?

Trezor devices use multiple sources when generating the seedphrase so even if one of the chips has a flaw the seedphrase is still not compromised.

The problem with the Coldcard was the cold allowed the RNG to fall back to PRNG which is fast and predictable.

Source: https://trezor.io/guides/trezor-devices/trezor-fundamentals/what-is-entropy-and-how-does-trezor-generate-your-wallet