BitBox Ships Security Update After AI Finds Severe Wallet Flaws

1 hour ago 2 sources neutral

Key takeaways:

  • Persistent hardware wallet vulnerabilities may erode self-custody confidence, subtly benefiting regulated custody solutions.
  • No exploited BitBox funds limits immediate BTC sell-side pressure from this disclosure.
  • Investors should treat firmware update speed as a security metric for hardware wallet holdings.

BitBox, the Zurich-based maker of the BitBox02 hardware wallet, has shipped its Dixence security update after an AI-assisted internal review uncovered two severe firmware vulnerabilities and a bootloader issue. The company disclosed the flaws itself and says there is no evidence they were exploited in the wild.

The first issue sits in the bootloader, which decides what firmware a device will accept. BitBox had already shipped a partial fix in July's Oeschinen release (v9.26.2), but the company now says the underlying problem was worse than initially reported. An attacker running a phishing campaign could trick a user into installing a fake BitBoxApp and unlocking a tampered device, then load malicious firmware onto a genuine BitBox02 and steal funds. The newer BitBox02 Nova was never exposed because of its bootloader version.

The second severe vulnerability is a memory-corruption flaw in the Multi edition of the BitBox before wallet setup. When paired with a hostile computer, it could allow arbitrary code execution and malicious firmware installation. The Bitcoin-only edition does not contain the affected code.

A third, less dangerous issue touched the wallet’s silent-payment feature. It could not steal coins directly, but could have locked funds to a wrong address in a ransom-style move. All three issues are fixed in v9.26.5.

The disclosure follows the Coldcard exploit, which drained roughly 1,596 BTC (more than $130 million) through a five-year-old firmware bug, and a SafePal data breach that exposed physical addresses. BitBox said: “There are no reports of stolen user funds and there is no reason for users to panic.” The fix is available at bitbox.swiss/download, and older firmware remains exposed until users install the update.

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