According to CoinMeta, a flaw in the seed generation process of Coldcard hardware wallets has put approximately $116 million worth of Bitcoin at risk of theft. The founder of Texitcoin, Bobby Gray, stated that Coldcard users suffered losses due to trusting the security of the hardware wallet-generated mnemonic phrases without independently verifying the randomness of those phrases. Gray pointed out that Coldcard used a damaged seed generator over the past five years, resulting in some wallets generating seeds with only 40 bits of entropy instead of the promised 128 bits. Coldcard is a Bitcoin-specific hardware wallet produced by Canadian hardware manufacturer Coinkite, designed to isolate private keys from computers connected to the internet, thereby reducing the risk of malware and online attacks. A fixable firmware has been released, and affected users are advised to generate new seeds and verify their security.