On August 17, hardware wallet manufacturer BitBox announced the release of the Dixence update, which resolves two significant vulnerabilities in its firmware. These issues were identified during internal audits utilizing AI models.

We just released the Dixence security update.

During our internal audits, we were able to discover and fix multiple security issues in the BitBox firmware.

We recommend our users to update their BitBoxApp and device firmware through the BitBoxApp settings.…

— BitBox (@BitBoxSwiss) August 17, 2026

The company reported no incidents of exploitation or theft related to these vulnerabilities, and users’ seed phrases remained unaffected.

Details of the Firmware Issues

The first vulnerability pertained to the BitBox02 bootloader, which is responsible for firmware installation. Although the issue was initially fixed in the July version 9.26.2, developers later discovered that the potential attack was more severe than previously assessed.

For an attacker to exploit this vulnerability, they would first need to successfully execute a phishing attack. This would involve convincing the user to install a counterfeit version of BitBoxApp along with malicious firmware, followed by unlocking the device. Once this is done, the attacker could install modified software on a legitimate BitBox02, enabling them to steal funds.

The newer BitBox02 Nova model is immune to this attack due to a different bootloader version.

The second critical vulnerability was related to memory corruption in the Multi version. This issue arose when the device, which had not yet been set up with a wallet, was connected to a malicious computer. This flaw allowed for arbitrary code execution and potentially the installation of altered firmware, which was rectified in Dixence version 9.26.5.

During the same audits, engineers uncovered another issue within the Silent Payments function. While this did not allow for direct theft of coins, an attacker could lock the coins at an incorrect address and then demand a ransom for restoring access. This bug was also fixed in version 9.26.5.

BitBox developers noted that they conducted an extensive review of the entire codebase in recent weeks. The company also received a record number of reports from external auditors, most of whom utilized advanced AI models to identify flaws. However, these external checks have not revealed any critical or severe vulnerabilities.

Who Should Update

Version 9.26.5 addresses all three vulnerabilities identified by BitBox. The company advises all users to install this update. Older firmware versions are affected in various scenarios:

  • BitBox02 with firmware prior to 9.26.1—when installing malicious applications and firmware;
  • BitBox02 and BitBox02 Nova Multi prior to 9.26.4—if the wallet is not yet set up and the device is connected to a malicious computer;
  • BitBox02 and BitBox02 Nova with versions from 9.21.0 to 9.26.4—when using Silent Payments alongside a malicious device.

Developers recommended that users install the update through the already installed BitBoxApp or the official website. They also warned about potential phishing attempts following the disclosure of these vulnerabilities and reminded users not to enter recovery phrases outside of the wallet itself.

Context

The increased interest in such audits followed the hacking of Coldcard hardware wallets. In July, hackers began exploiting a flaw in the generation of seed phrases that had existed in the firmware for several years.

By mid-August, Galaxy Research confirmed the theft of at least 1778.84 BTC, valued at $112.7 million. Including unconfirmed incidents, the total damage was estimated at around $153 million.

Following the incident, managing partner of Dragonfly, Hasib Qureshi, stated that an AI audit costing about $2 could have detected the Coldcard issue. In one experiment, the GLM 5.2 model identified the flaw in approximately 20 minutes without internet access.

At Kraken, they pointed out another aspect of the problem: the mere existence of an audit does not ensure security. The exchange's security director, Nick Percoco, emphasized the need to evaluate not just individual components of the device, but the entire process from the source of randomness to the firmware that generates the seed phrase.

Simultaneously, the Bitcoin Red Team launched a large-scale AI scan of Bitcoin projects. The team examined hundreds of repositories and reported thousands of potential issues.

According to participants, AI significantly accelerated the identification of vulnerabilities, but manual verification of results and the communication of verified reports back to developers became a new bottleneck.

Amid these events, wallet manufacturers faced additional threats. On August 13, Trezor reported a data leak affecting nearly 14,000 customers through a logistics partner, and on August 16, SafePal disclosed a data breach involving around 39,800 users.

In the latter case, information including shipping addresses, phone numbers, and emails was exposed, which could be used for phishing and targeted attacks.

Lastly, in August, the Netherlands' National Cyber Security Centre noted a new vector for online attacks on Mac devices through a vulnerability in Screen Sharing, allowing attackers to gain full control of computers, steal data, and install Monero miners.