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What Happened?
A critical security vulnerability has been found in the ESP32 chip, a microcontroller used in many IoT devices, including popular crypto wallets. The flaw, identified as CVE-2025-27840, permits attackers to forge cryptographic signatures and steal private keys. This issue arises from weaknesses like a faulty random number generator and an inability to reject invalid private keys, compromising the chip’s security.
Who Does This Affect?
This vulnerability impacts users of crypto wallets and other IoT devices that rely on the ESP32 chip. Crypto wallets like Blockstream Jade are particularly at risk, facing potential theft of Bitcoin keys via exploited Bluetooth and Wi-Fi capabilities. Beyond individual users, the flaw poses a threat to broader networks, affecting millions of smart home devices, routers, and automation systems worldwide.
Why Does This Matter?
The discovered vulnerability in the ESP32 chip could have significant market impacts by undermining trust in IoT and cryptocurrency devices. As these chips are embedded in billions of products globally, the flaw raises concerns about the security of connected devices and potential large-scale cyberattacks. This situation underscores the need for stricter security measures and hardware verification in blockchain hardware to protect against theft and unauthorized access.
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