Attackers exploiting a vulnerability in Coldcard hardware wallets have stolen close to $110 million in bitcoin, with the theft unfolding over multiple waves since late July. Galaxy Research first noticed suspicious activity on July 30, when over 1,000 BTC vanished from nearly 1,200 wallets within an hour. The initial breach quickly snowballed as additional coordinated attacks followed.
By early August, the total drained assets reached roughly 1,755 BTC taken from about 5,000 wallets. The situation worsened Sunday when Galaxy Research’s Alex Thorn warned of a fourth wave actively stealing 388.93 BTC, worth $24.53 million, across hundreds of transactions. The hacker's tactics suggest attempts to bypass transaction restrictions, leaving affected users scrambling to protect remaining funds.
This incident ranks among the largest known hardware wallet hacks, casting doubt on the safety of offline crypto storage when the software generating wallet keys is compromised. In response, Coldcard’s manufacturer Coinkite has halted all wallet shipments to contain the fallout. The attack also raises fresh concerns about security protocols within hardware wallets compared to emerging threats.
Meanwhile, the crypto market continues to experience shifts as altcoins gain traction and major platforms adjust policies. For instance, altcoins gaining ground amid shifting institutional interest emphasize the contrasting dynamics in crypto adoption as hardware wallet users face unprecedented risks.
This article provides informational content and should not be taken as financial advice.
