CoinTelegraph
Coldcard's 5-year bug exposes critical hardware wallet testing gap: Kraken security chief
August 3, 2026•01:09 AM
A five-year vulnerability in Coldcard has exposed a critical flaw in hardware wallet auditing processes, according to Kraken's security chief Nick Percoco. The bug escaped detection because auditors only verified the existence of the random number generator, not that it was being used in the seed generation process, representing a significant risk to cryptocurrency users.
Percoco has labeled the incident a "wake-up call" for hardware wallet manufacturers, calling for independent testing to verify that the approved source of randomness is actually being used by production firmware. Consumers are asked to trust a manufacturer's implementation of the single most critical function in the system with no independent verification that the approved entropy path is the one actually executing, highlighting the urgent need for greater transparency and security in the cryptocurrency ecosystem.
This is a summarized and adapted version by Artificial Intelligence. To read the complete original story, visit the official source.
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