Coinkite just dropped a major firmware update after AI uncovered critical security flaws that let hackers steal $114 million in Bitcoin — including broken randomness, transaction approval, and USB data handling. If your wallet was already compromised, you’ll need to regenerate your seed phrase and move funds. The new seed creation requires physical randomness like dice or coins for true unpredictability. This incident underscores AI’s rising role in crypto security audits — projects from BTCPay to exchanges are now relying on it to find bugs faster than ever. Coinkite swapped out their old randomizer for SHA-256 (Bitcoin’s own standard) and added a final transaction check to block tampering even if your computer is hacked. Law enforcement is still hunting the culprits, and Coinkite urges Mk4/Mk5 users to upgrade to v5.6.1 and Q-model users to v1.5.1Q — only from their official site.
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