All articles tagged with #cold wallets
Hackers drained about $110 million in Bitcoin from Coinkite’s cold wallets after exploiting a software bug that allowed seed-phrase reconstruction, affecting around 5,000 wallets (rising to at least 7,300). Coinkite says it is conducting an ecosystem-wide security audit and has paused automated data-blanking for legal reasons while investigating and assisting affected customers.
FTX CEO John Ray III criticized the company's use of Amazon Web Services (AWS) to store private keys for its hot wallets, which were compromised in November 2021, resulting in the loss of $432 million worth of funds. Ray stated that FTX kept virtually all crypto assets in hot wallets and did not use offline, air-gapped, encrypted, and geographically distributed laptops to secure crypto assets. He also mentioned that FTX lied about using cold storage and recommended that FTX.US make better use of cold wallet storage, but no such system was put in place prior to the bankruptcy.