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Home Bitcoin

Bitcoin Red Team Finds 85 Critical Flaws Across 390 Open Source Repos After Coldcard Exploit

Digital Pulse by Digital Pulse
August 6, 2026
in Bitcoin
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Bitcoin Red Team Finds 85 Critical Flaws Across 390 Open Source Repos After Coldcard Exploit
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Rallied by the latest, catastrophic vulnerability in Coldcard {hardware} wallets, exploited to the tune of over $100 million, the Bitcoin group has rallied to forestall future vital bugs within the business’s open supply software program.

PSA: Any customers of Coldcard wallets that haven’t migrated their bitcoin to new seeds generated in safe firmware are nonetheless in danger. It might not be too late to behave; see advisory on the matter. 

Led by Calle, software program engineer, avid vibe coder and creator of the Android model of Bitchat, and Rob Hamilton, the CEO of Anchorwatch a Bitcoin self-custody insurance coverage firm, the Bitcoin Crimson Staff has now secured funding, with over $40,000 spent in AI tokens to audit over 390 Open Supply repositories throughout Bitcoin. 

Colloquially referred to as the “Bitcoin Crimson Staff”, with memes about Rob Hamilton and Calle now being the CEO and CTO of Bitcoin, this AI-driven safety audit is having a critical impression throughout the business. Only a few days in the past, buried within the information of ongoing thefts of bitcoin from MK3+ Coldcards attributable to an RNG bug, Boltz trade introduced it might be pausing operations to meet up with AI-driven hacking makes an attempt. 

“27.5 hours in, we’ve filed 4,962 findings throughout 390 tasks. 85 vital and 635 excessive severity points. We’re at 2.31 h+c findings per particular person per hour,” stated Calle in the latest replace on Crimson Staff efforts to shore up the business’s cybersecurity.

The Crimson Staff safety evaluation effort is utilizing fashions like Kimi K3, GPT Sol, Fable, Opus and GLM5.2, among the costliest and cutting-edge fashions out there. At first, entry to OpenAI and Anthropic fashions was restricted, resulting in an over-reliance on Chinese language open-source fashions, a truth which many within the business lamented and noticed as a nasty omen for U.S. AI dominance. However because the Crimson Staff challenge grew in affect since final week’s Coldcard hack, connections have been established and confirmed with OpenAI, giving Crimson Staff entry to GPT Sol. Hamilton’s point out of Fable in his August 4 tweet suggests entry to Anthropic has additionally been established.

Bills which had been final tallied at over $40,000 have been coated by OpenSats, a non revenue 501c3 group devoted to funding open supply Bitcoin growth tasks. The Bitcoin Crimson Staff doesn’t at present have an internet site or a GitHub repository to hyperlink to, however the workforce is made up of many people throughout the Bitcoin business. People publicly thanked for his or her assist embrace however usually are not restricted to danielabrozzoni, lylepratt, stutxo, benthecarman, thesimplekid. 

Hamilton shared {that a} customized harness has been constructed and is evolving shortly. Made up at one level of 171,599 strains of code, the harness is designed to establish and check vital Bitcoin software program libraries and high-load-bearing code, establish and doc vulnerabilities, reproduce them and bundle the confirmed knowledge into helpful stories. In the end delivering the data responsibly to engineers within the business. Hamilton additionally shared that Crimson Staff intends to open supply the harness such that Bitcoin firms can run it towards their closed-source code. 

Crimson Staff is actively reaching out to related open supply tasks with vital vulnerabilities found, resulting in a broad sense of dread from engineers within the business once they obtain chilly direct messages from Hamilton or Calle, as seen in numerous humorous screenshots shared on social media.

https://x.com/callebtc/standing/2085035257477190080 

Among the many key insights shared by Crimson Staff publicly as this AI-driven safety replace of Bitcoin FOSS takes place, Hamilton shared that engineers with particular subject material may generally yield high-value outcomes from the Harness, which could in any other case “odor out one thing is unsuitable,” however is likely to be lacking area of interest context. An perception which speaks to the significance of getting human intelligence and expertise work hand in hand with the AI to effectively establish vital vulnerabilities.

Hamilton additionally ended a multi-day Crimson Staff effort after the Coldcard hack with some private notes. He stated that the found vulnerability in Coldcard random quantity turbines and consequent exploitation of the bug by hackers had been a “non secular assault” on Bitcoin and the self-custody ethos of the business, “I imply that within the literal sense of the phrases”. After expressing grief for the losses skilled by many Bitcoiners throughout this now historic hack, Hamilton closed his tweet with a tone of hardened decision:

“Whereas issues usually are not straightforward proper now. I’ve the best conviction ever in my life that the thought and know-how of Bitcoin is price preventing for. To that finish. There isn’t any Bitcoin with out self-custody. That is non-negotiable.”



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Tags: BitcoinColdcardCriticalexploitFindsFlawsOpenRedReposSourceTeam
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