News linked to both this project and an event.
Odaily News: Hardware wallet manufacturer Ledger has stated that the recent Coldcard vulnerability indicates the hardware Bitcoin wallet industry needs to reassess its security model. Ledger CTO Charles Guillemet stated that Ledger devices were not affected, as their recovery phrases are generated by a hardware random number generator built into a certified secure element. Coldcard manufacturer Coinkite disclosed last week that its air-gapped Coldcard Bitcoin hardware wallet contains a vulnerability traceable to firmware versions from March 2021. The vulnerability uses a software fallback mechanism to generate wallet recovery seeds, allowing certain private keys to be guessed, with related losses reaching approximately $130 million. Coinkite released a fixed firmware on Sunday and urged affected users to transfer funds to newly generated wallets. Charles Guillemet stated that open source is different from being audited — the flaw had existed in public code for over five years, and AI is enabling attackers to scan code and identify vulnerabilities at machine speed. Charles Guillemet also said that over the past two years, Ledger has combined AI with security engineers and cryptography experts to review code and identify vulnerabilities. He believes that when evaluating hardware wallets, users should understand how randomness is generated and whether that process has received independent certification.
Odaily Planet Daily reported that Bitcoin News posted on X platform, stating that new evidence suggests the anonymous account "switck," who wrote the LibNgU code, may actually be Peter Gray, Co-founder and CTO of Coinkite. This code is at the center of the COLDCARD entropy failure incident. Researchers claim that Gray's GPG key signed dozens of commits by switck, and other identifiers appear to link the two identities together. Bitcoin developer James O'Beirne stated that he had warned Coinkite in May 2025 that the RNG implementation of LibNgU looked suspicious and recommended removing it, but he said the other party responded that if there were issues, they would have already been discovered. Screenshots also show that as early as April 2021, users had already raised questions about the LibNgU rewrite. If these findings are accurate, it means that the engineer who introduced the code was later linked to the theft of over 1,800 BTC, and had received direct warnings about the RNG implementation more than a year before the vulnerability was publicly disclosed.
According to the quarterly Security and Compliance Report by Hacken, 67 security incidents in the Web3 space resulted in losses of $763.9 million in Q2 2026, making it the most severe quarter since Q2 2025. Compromised keys and infrastructure accounted for 88.3% of the stolen funds, approximately $674.5 million. Smart contract vulnerabilities remained the most common type of attack, linked to 44 out of the 67 incidents, but corresponding losses represented only about 11% of the total. Approximately 75.5% of the losses stemmed from two incidents attributed to North Korean threat actors, and 14 audited protocols were breached during the quarter. Leo Fan, founder of Cysic, stated that an audit is a point-in-time assessment of a specific codebase and does not automatically cover signature devices, cloud infrastructure, operational permissions, subsequent upgrades, third-party dependencies, or old contracts that remain callable. Samuel Videau, CTO of Genius, pointed out that nearly 90% of losses came from compromised keys, signers, and infrastructure. Multiple security leaders noted that Web3 security requires layered defenses including real-time monitoring, key management, multi-party authorization, and bug bounty programs. Leo Fan expects that operational access control attacks will continue to dominate losses in the second half of 2026, including social engineering, credential theft, compromised signers, cloud or CI/CD intrusions, and attacks on off-chain validator infrastructure.
Odaily AI-driven anti-fraud infrastructure provider InfoHawk has announced the completion of a $2.25 million Pre-Seed funding round, led by Moonshots Capital, with participation from former U.S. Federal Trade Commission Chairman Jon Leibowitz, AppNexus founder Brian O'Kelley, former Meta advertising executive Rob Goldman, GitHub CTO Vlad Fedorov, and others. The new funds will be used to support the company's application of AI content recognition and deep infrastructure analysis technology to help enterprises detect, analyze, and combat large-scale online fraud, phishing sites, brand impersonation, and Deepfake attacks. (PRNewswire)
Ledger Chief Technology Officer Charles Guillemet pointed out that the development of post-quantum cryptography has entered a critical stage. Although the timeline for a practical quantum computer remains unclear, a full-scale migration of the encryption systems across the industry is an inevitable trend. Led by NIST, the traditional sector plans to phase out high-risk algorithms by 2030 and completely ban them by 2035, with government and enterprise institutions expected to complete their migration layouts by 2029. Encryption and key exchange will adopt ML-KEM to defend against quantum decryption attacks on harvested data, with digital signatures becoming the core of blockchain transformation. The traditional industry prefers ML-DSA hybrid schemes, while the blockchain sector favors the more secure and robust SLH-DSA hash-based signature. Both schemes have their respective advantages and disadvantages. The compatibility challenges of post-quantum algorithms with MPC and threshold signatures remain a key risk that the industry urgently needs to address.
According to Cointelegraph, the widespread adoption of AI is driving up the number of submissions to cryptocurrency industry bug bounty programs—but a flood of low-quality “AI spam” reports has also emerged, placing a heavy burden on protocol teams for triaging. Barry Plunkett, Co-CEO of Cosmos Labs, stated that submission volume to its platform surged 900% year-on-year, with 20–50 reports received daily; Kadan Stadelmann, CTO of Komodo Platform, likewise noted a marked rise in low-quality and false-positive reports, attributing the root cause primarily to AI’s drastic reduction in the cost of generating reports. Daniel Stenberg, creator of the open-source tool curl, has already shut down his bug bounty program outright due to being overwhelmed. In response, industry insiders recommend that teams deploy defensive AI systems to automatically triage reports and adopt stricter submission criteria—reducing the volume of invalid reports and ensuring genuine vulnerabilities receive timely attention.