Bitcoin prices fell sharply on Monday following reports that hackers exploited a critical coding error in hardware wallets manufactured by Toronto-based Coinkite Inc., stealing more than USD 140 million in cryptocurrency.
The breach has sent shockwaves through the digital asset community, reigniting intense debate over the safety of self-custody solutions that were previously considered the gold standard for security.
The market reaction was immediate and severe.
Bitcoin, along with other major cryptocurrencies, sold off as investors rushed to liquidate positions or move funds to alternative storage methods.
The incident underscores the persistent vulnerability of even the most trusted security infrastructure in the crypto industry, where a single software flaw can expose millions of dollars to theft.
Coinkite, which produces the Coldcard line of hardware wallets, has faced scrutiny after the sophisticated cyberattack revealed a weakness in its code.