A critical firmware flaw — using a software pseudo-random number generator instead of a hardware RNG since 2021 — has led to the theft of 1,367+ BTC (≈$88.6M) from over 4,500 addresses. Coinkite has issued an emergency patch, but it only protects newly created wallets, and some users report bricked devices after updating.
Matters because: It raises fresh concerns about self-custody security. The stolen funds mostly remain unmoved, so the immediate exchange-sell pressure looks limited.