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Critical Vulnerability Discovered in ESP32 Chip Used in Bitcoin Hardware Wallets

A severe flaw in the ESP32 chip, found in affordable Bitcoin hardware wallets, puts users at risk of malicious attacks and unauthorized transactions.
Published on 2025-04-16

Critical Vulnerability in ESP32 Chip Exposed

A critical vulnerability has been identified in the ESP32 chip, commonly used in cost-effective Bitcoin hardware wallets. This issue, tracked under CVE-2025-27840, stems from the chip's random number generator, which suffers from insufficient entropy. This flaw severely compromises the generation of secure private keys, exposing users to potential brute-force attacks and unauthorized firmware updates that could lead to illegal transactions.

Popularity and Usage of ESP32 in Wallets

The ESP32 chip, developed by Espressif Systems, is a low-power microcontroller with integrated Bluetooth and Wi-Fi capabilities. Its affordability and versatility make it a favorite for lightweight devices, such as Blockstream’s Jade wallet and various DIY hardware wallet projects. Despite its popularity, the ESP32 lacks a hardware security module (HSM), a critical component found in more secure wallets like Ledger, Trezor, and Coldcard.

Security Implications and Comparisons

High-end wallets rely on dedicated secure components designed to generate high-quality randomness and protect cryptographic secrets, making them less susceptible to such vulnerabilities. The ESP32's inability to produce reliable entropy makes it vulnerable to attacks, where predictable or insufficient entropy can allow attackers to guess or compute private keys, jeopardizing user funds.

Recommendations for Developers and Users

Developers using the ESP32 for wallet creation are advised to integrate external entropy sources or transition to more secure architectures. Users of ESP32-based wallets should remain vigilant, consider transferring funds to safer devices, and stay updated on any potential fixes or redesigns to mitigate this critical security risk.

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