What to Watch
The incident highlights a persistent tension in hardware wallet security: a single entropy failure in a widely deployed firmware branch can expose years of dormant savings. While the Mk3's open-source firmware allowed independent researchers to identify the RNG integration error, the same transparency did not prevent the flaw from persisting across more than two years of releases. Whether the coordinated sweep proves to be the first confirmed exploitation or a separate event, the window for safe migration is defined by the unknown capabilities of anyone who may have reconstructed the deterministic seed space.
Will the formal technical review from Coinkite confirm that the deterministic seed space was practically reconstructible before the sweep occurred?
Sources: Source 1 · Source 2 · Source 3 · Source 4 · Source 5 · Source 6
