{"id":75275,"date":"2026-08-05T01:00:16","date_gmt":"2026-08-05T05:00:16","guid":{"rendered":"https:\/\/stateofthenation.info\/?p=75275"},"modified":"2026-08-05T09:54:45","modified_gmt":"2026-08-05T13:54:45","slug":"this-will-end-very-badly-89-million-crypto-theft-blamed-on-new-ai-paradigm","status":"publish","type":"post","link":"https:\/\/stateofthenation.info\/?p=75275","title":{"rendered":"

THIS WILL END VERY BADLY! $89 million crypto theft blamed on \u2018new AI paradigm\u2019<\/h2>"},"content":{"rendered":"

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\u00a9\u00a0<\/span>\u00a0Getty Images\/Malte Mueller<\/span><\/div>\n<\/div>\n<\/div>\n
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The theft of at least $89 million in cryptocurrency that was supposedly safely stored in high-security hardware wallets has prompted the producer to warn that a\u00a0\u201cnew AI paradigm\u201d<\/em>\u00a0is redefining cybersecurity.<\/p>\n

Hardware wallets are physical devices that store the private keys needed to access cryptocurrency and have long been considered safer than leaving digital assets on exchanges.<\/p>\n

Last week, however, users of some Coldcard wallets saw their funds drained by unidentified perpetrators in a series of attacks.<\/p>\n

The theft was unusual because the attackers managed to determine users\u2019 keys after discovering that the wallets\u2019 algorithm did not generate sufficiently random numbers. The devices themselves were not hacked and were not connected to the Internet, as is typical with so-called cold storage.<\/p>\n

Cryptocurrencies function through distributed ledgers that record transactions, while secret cryptographic keys are used to verify that a transfer was authorized by the legitimate owner.<\/p>\n

\u201cWe believe this is a sober reality of the new AI paradigm,\u201d<\/em>\u00a0Rodolfo Novak, CEO of the Canadian company Coinkite Inc., wrote Friday in a message apologizing for the flaw in Coldcard devices.<\/p>\n

\u201cAI-assisted code review can now find latent bugs at a speed that is outpacing even the industry\u2019s most seasoned experts,\u201d<\/em>\u00a0he added.\u00a0\u201cIf your firmware is open-source or has ever been public, assume it\u2019s already being read by attackers and defenders alike.\u201d<\/em><\/p>\n

Coinkite issued its first warning to customers on Thursday, urging them to spread the word that users needed to update the affected firmware, originally released in March 2021, and move their Bitcoin to new accounts protected by newly generated seeds.<\/p>\n

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