ColdCard: RNG Flaw Drains $1.6M BTC Holdings

CZ Binance flagged a critical ColdCard hardware wallet exploit that drained 18.25 BTC valued at $1.6 million CAD from user @itscoachgoodman on July 29, tracing the loss to a 2021 pseudo-random number generator flaw in seed phrase creation that enabled AI brute-force attacks despite offline storage.

The incident mirrors the TrustWallet pseudo-random bug that caused $12 million in losses years earlier, with both cases underscoring that hardware wallet code quality and issuer accountability determine user recovery outcomes rather than cold-storage best practices alone.

BTC price action on the 4h chart shows price at $62586.83 testing the lower Bollinger Band support near $62201 while EMA50 resistance at $64009 and EMA200 at $63831 cap upside, with MACD death cross at -405 confirming bearish momentum and RSI at 34 leaving room for further downside before any relief bounce.