- A critical vulnerability (CVE-2025-27840) in ESP32 microcontrollers threatens Bitcoin wallets, enabling unauthorized transactions and private key theft.
- Research firm Crypto Deep Tech has demonstrated the ability to forge transaction signatures and extract private keys, successfully decrypting a wallet holding 10 BTC.
- The widespread deployment of ESP32 chips in billions of IoT devices, including hardware wallets like Blockstream Jade, makes this vulnerability particularly concerning.
A severe bug discovered in the popular ESP32 microcontroller is putting bitcoin (BTC) at risk of theft worldwide. The vulnerability, identified as Critical Vulnerability Error of 2025 number 27840 (CVE-2025-27840), allows Hackers to exploit module updates to sign unauthorized transactions and remotely steal private keys from affected devices.
The compromised chip, manufactured by ESP32, is installed in billions of Internet of Things (IoT) devices globally, including hardware wallets such as Blockstream Jade that generate signatures for bitcoin transactions. Security researchers have identified insufficient entropy in the chip’s random number generator, creating a critical weakness that enables attackers to brute force guess keypairs.
Cybersecurity firm Crypto Deep Tech has already demonstrated the severity of the vulnerability by successfully forging transaction signatures using the chip’s flawed message hashing system. In a concerning proof of concept, the firm’s white hat hackers managed to decrypt the private key of an actual wallet containing 10 BTC.
Global Impact on Bitcoin Security
The widespread installation of ESP32 chips in devices worldwide has raised significant alarm among cybersecurity professionals. The vulnerability affects systems that secure various valuable assets including bitcoin, private data, and other digitally protected property.
Bitcoin self-custodians and companies are taking urgent notice of the bug due to its extensive reach and the difficulty in addressing vulnerabilities that are already physically embedded in numerous networks. Security researchers continue their responsible disclosure process while warning that this flaw could potentially serve as a vector for state-level theft operations.
Challenges in Addressing the Vulnerability
The most troubling aspect of this security breach is the sheer number of devices already containing the compromised ESP32 chip. With billions of units deployed worldwide, addressing this vulnerability presents an extraordinary challenge for manufacturers, security professionals, and bitcoin holders alike.
White hat researchers are actively working on mitigation strategies while maintaining responsible disclosure protocols. The situation highlights the critical importance of hardware security in cryptocurrency storage solutions and the potential consequences of embedded vulnerabilities in widely deployed components.
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