Cold Wallet manufacturers warn that the AI ​​industry still hasn't detected vulnerabilities after a Bitcoin hack caused $130 million in losses.

Coinkite, a manufacturer of hardware Bitcoin wallets, admitted that its AI could not detect vulnerabilities exploited by hackers, resulting in users losing $130 million in assets.

On August 5, 2569, at 11.47:XNUMX a.m., Bloomberg News reported that Coinkite Inc., a Canadian manufacturer of hardware Bitcoin wallets, has warned that artificial intelligence (AI) cannot detect software vulnerabilities exploited by hackers. This resulted in the loss of users' digital assets, valued at approximately $130 million.

This incident occurred with Coldcard Wallet, an offline cryptocurrency wallet (cold wallet) widely recognized as one of the most secure ways to store digital assets because it is not directly connected to the internet.

However, this attack has shaken investor confidence and sparked questions about the concept of self-custody of digital assets, a key principle in the cryptocurrency industry.

The AI ​​found no vulnerabilities, even after testing multiple models.

Coinkite states that the vulnerability is located in the firmware, where two pieces of software interact, not in the core code or encryption system which is usually subject to rigorous checks.

The company revealed that prior to the incident, they had been using AI to inspect security-critical code, including in the weeks leading up to the attack, but the AI ​​was unable to detect the vulnerability.

Following the incident, Coinkite retested the code with several leading AI models, but the results were consistent: none of the models were able to detect the vulnerability.

The company therefore warned that this incident should serve as a warning to all companies that develop hardware and software for Bitcoin and cryptocurrencies, especially organizations that rely on AI for security code verification.

"If your team is using AI to inspect security-related code, you should prioritize testing, especially at the interfaces between different systems or modules, as current AI may not yet detect vulnerabilities of this type."

The damage reached $130 million.

Data from Galaxy Research estimates that the Coldcard attacks occurred in at least four waves, causing a total damage of approximately $130 million USD.

side Nikhil Raguvira, Chief Executive Officer of Predicate. A blockchain governance infrastructure company said that while personal ownership of assets is at the heart of the digital asset system, this incident demonstrates that... "A single weakness can shake confidence in the entire system."

He believes the real risk may not just be the damage from hacking, but rather the potential loss of investor confidence and gradual withdrawal from the digital asset market in the long term.

Coinkite stated that the goal of this disclosure is to help software and hardware developers in the crypto industry understand how vulnerabilities occur and why AI fails to detect them, in order to prevent similar incidents from recurring in the future.

refer : bloomberg.com

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