Coldcard Enhances Seed Generation and Coinkite Warns Existing Phrases Remain Unsafe

Coinkite released firmware version 5.6.1 for Coldcard Mk4 and Mk5 devices, and version 1.5.1Q for the Coldcard Q, with the goal of strengthening seed phrase generation following the security breach that compromised funds worth approximately $112 million in Bitcoin.

The update requires new seeds to incorporate user-provided entropy through at least 65 keystrokes with unpredictable timing, 50 six-sided dice rolls, or 128 coin flips, combined with randomness drawn from multiple device sources, including its secure elements and hardware random number generator.

Coinkite urged Coldcard users to migrate their funds to new seeds immediately, warning that existing seeds will remain vulnerable even after installing the update. Confirmed losses from the exploit reached 1,778 BTC, positioning the incident as the third-largest cryptocurrency exploit of 2026, according to DefiLlama data.

Additionally, security firm Coinspect introduced Unlukey, a free tool designed to identify wallet addresses generated from weak seed phrases.

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