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Attackers exploited a weakness dubbed "Milk Sad" in the Libbitcoin Explorer 3.x library to steal more than $900,000 from cryptocurrency wallets whose seeds were generated with the bx seed command. Researchers said the flaw came from weak randomness during wallet-seed generation, allowing private keys to be guessed and funds drained; one reported theft exceeded $278,318. The issue was identified by the Distrust team, reported to the vulnerability database, and later publicized by blockchain security firm SlowMist, which said it worked with exchanges in an attempt to block the attacker’s address.
The incident put renewed scrutiny on the long-running Libbitcoin project and raised concerns that exposure could extend beyond Bitcoin wherever the library was used to create accounts. Libbitcoin Institute member Eric Voskuil said the vulnerable command was not intended for production wallet use, and reports indicated the project could strengthen warnings or remove the feature. The thefts highlighted how insecure seed generation in developer tooling can translate directly into large-scale wallet compromise.
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5 events from the most recent confirmed update back to the earliest known activity.
Libbitcoin Institute member Eric Voskuil responded that the affected command was not intended for production wallet use and said it might be removed or accompanied by stronger warnings. This was the project's public response to the thefts and vulnerability concerns.
Blockchain security firm SlowMist publicized the vulnerability, attributed the thefts to weak randomness in the "bx seed" command, and said it had coordinated with exchanges in an attempt to block the attacker's address. Its reporting broadened awareness of the incident and its cross-cryptocurrency impact.
Attackers exploited predictable seeds generated by the vulnerable Libbitcoin Explorer function to drain affected cryptocurrency wallets, with total losses reported at more than $900,000. SlowMist said one individual theft exceeded $278,318.
The Distrust team identified the Libbitcoin Explorer 3.x weakness and reported it to the CEV vulnerability database. This disclosure established the technical basis for later reporting on thefts tied to the bug.
A flaw later dubbed "Milk Sad" existed in Libbitcoin Explorer 3.x's "bx seed" command, where weak randomness made generated wallet seeds predictable and allowed attackers to derive private keys. The issue affected users who created wallets or accounts with the vulnerable seed-generation function.
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A flaw in **COLDCARD** hardware wallet firmware made some recovery seeds predictable, and attackers used the weakness to steal about **594.48 BTC**—roughly **$38 million**—from around **500 wallets** in a coordinated sweep lasting about **25 minutes**. Reporting tied the theft to wallets created on affected devices, with the losses spread across roughly 500 transactions in three blocks and most of the stolen funds—about **562 BTC**—later consolidated into a single address. The targeted wallets were reportedly **single-signature** wallets holding more than **0.15 BTC** each, and many had been dormant for years. The weakness was traced to firmware logic that failed to properly use the device hardware random number generator and instead relied on a predictable fallback with a **32-bit reseed** mechanism, reducing entropy in generated seeds. Coinkite said the issue affects **Mk3** devices running firmware **4.0.1 and later**, and also affects **Mk4, Mk5, and Q** devices that generated seeds before fixed firmware was released; the company urged users to update firmware, create entirely new seeds, and move funds because updating alone does not repair already weak seeds. Coinkite added that wallets protected with sufficient independent dice-roll entropy or a strong **BIP-39 passphrase** are better protected, while **TAPSIGNER**, **SATSCARD**, and **OPENDIME** are not affected.
Aug 11, 2026
Coinkite disclosed an ongoing security incident in which vulnerable **COLDCARD** firmware generated wallet seeds with weak entropy, allowing attackers to reproduce seeds offline and steal funds. The company said a build and link integration error during its `libNgU` migration caused seed generation to use MicroPython’s non-cryptographic **Yasmarang** PRNG instead of the intended hardware true random number generator, despite `MICROPY_HW_ENABLE_RNG=0` being meant to disable the software path. Coinkite halted shipments, destroyed remaining affected inventory, released patched firmware for newly generated seeds, and warned that seeds already created on vulnerable devices remain at risk; **SATSCARD, OPENDIME, and TAPSIGNER** were not affected. External reporting said the exploitation began rapidly, with Galaxy Research estimating attackers drained **1,367 BTC**—about **$88.6 million**—from **4,385 addresses** across multiple attack waves after an initial 41-minute sweep of 1,082.65 BTC from 1,196 addresses. Coinkite urged users who created seeds on affected firmware without at least **50 independent private dice rolls** and a strong unique **BIP-39 passphrase** to move funds to a new wallet immediately, while preserving affected devices for possible recovery and law-enforcement action. The company also temporarily suspended its normal 120-day customer data blanking process to preserve records for ongoing and anticipated legal proceedings, while allowing customers to request exemption from that retention protocol.
Aug 12, 2026
A wallet-drain campaign dubbed **Ill Bloom** exploited weak entropy in `CryptoJS.lib.WordArray.random()` to steal at least **$5.69 million** from cryptocurrency users, according to Coinspect. The flaw affected wallet applications that used vulnerable versions of CryptoJS to generate recovery phrases, allowing attackers to guess seed phrases, derive wallet addresses, and drain funds. Coinspect linked two theft waves between May 27 and July 13 to the issue and identified five affected apps: **RRWallet, Bexo Wallet, NanChat, Bitcoin Libre, and Milo**. The underlying problem traces to a long-standing weakness in CryptoJS random-number generation, broadly covered by advisory `GHSA-rg76-677x-56q9` for versions earlier than `4.0.0`, though exploitation depended on whether developers used the function for security-sensitive seed generation. Coinspect warned that simply updating an affected wallet does not secure wallets already created with weak recovery phrases; users must generate a new secure seed phrase and move funds, and additional vulnerable wallet apps may still exist beyond the five publicly named.
Aug 6, 2026