Security flaw not found: Canadian Bitcoin company warns of AI security failure

 

CoinKite, a leading Bitcoin wallet maker based in Canada, has revealed a major flaw in its open-source code that uses AI to assess security. The company’s disclosure comes in the wake of hackers taking advantage of a software flaw in its wallets that stole around 130 million U.S. dollars worth of Bitcoin. CoinKite says the security flaw it encountered is a strong warning to all technology companies that develop Bitcoin hardware and software.

The critical coding flaw was found in the technology used in the company’s popular ‘ColdCard’ wallets. Despite relying on artificial intelligence systems for security checks, the company explained in a blog post that the AI was unable to detect the flaw in the software’s build and sub-module boundaries. Following this, they demanded that all crypto companies that rely solely on open source codes and AI systems for security immediately undergo testing of their software.

Such a major security breach in hardware wallets, which are supposed to help keep Bitcoin safe, has caused great concern in the crypto sector. Coinkite said that it is extremely sorry for the technical error and is immediately changing the affected software versions and providing assistance to affected customers. In addition, experts say that the security guarantees provided by AI systems are not perfect and that this incident highlights the need for direct human review of critical codes.