5,000 NEW BTC HACKS + HEDGE FUNDS HIT — The Contagion Is Spreading

A white-hat group called Bitcoin Red Team filed nearly 5,000 security findings across 390 projects in just 30 hours — including 85 critical and 635 high-severity vulnerabilities — and that's before the conversation turns to whether Coinkite's CTO and the pseudonymous developer who introduced the entropy bug might be the same person. Meanwhile, BIP 110 is days away from its signaling window, and the hosts are warning listeners about replay protection before anyone touches coins on a potential fork chain. In this episode: • Bitcoin Red Team, now 16 researchers funded by OpenSats, spent roughly $40,000 on AI-powered security analysis to uncover the 4,962 findings, averaging 166 security issues per hour across Bitcoin-related projects. • The hosts dissect evidence linking Coinkite CTO Peter Gray to the pseudonymous developer who committed the flawed RNG code, including a job posting from July 8th for a firmware engineer — which one host argues may have forced whoever knew about the bug to act immediately. • NVK deleting old tweets about the Block Clock's network behavior, and the Block Clock's API calls being plain text rather than encrypted, are both examined; a source confirms it is not spyware but the deletions draw sharp criticism. • Boltz swap service went offline under AI-driven attacks, taking down Lightning functionality for Aqua, Bull Bitcoin, Blockstream Green, and others; Zeus wallet also announced a cybersecurity incident within the same recording session. • AI-powered voice phishing attacks hit major Wall Street hedge funds including Two Sigma, Citadel, and Point72, underscoring that the attack wave is not limited to Bitcoin infrastructure. • BIP 110 sits at roughly 2.5% miner signaling with a 55% threshold and days left; the hosts break down why without exchange support, wallet readiness, or broad ecosystem consensus, activation looks unlikely — and explain replay protection in plain terms for anyone holding coins through a potential fork. • South Korean Coinkite users who followed dice-roll seed generation practices appear to have been largely unaffected, offered as a concrete example of why that step matters. Watch the video version: https://youtu.be/xDnlNAz8pEk