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A 2021 Coldcard Firmware Flaw Is Still Draining Bitcoin Wallets
Galaxy Research reported a fourth wave of thefts from Coldcard hardware wallets, with roughly 389 Bitcoin moved from 462 addresses within hours. The attacks exploit a 2021 firmware flaw that weakened seed randomness, making private keys guessable, pushing total losses past $88 million.
Published:
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What happened
Galaxy Research reported a fourth wave of thefts from Coldcard hardware wallets, with roughly 389 Bitcoin moved from 462 addresses within hours. The attacks exploit a 2021 firmware flaw that weakened seed randomness, making private keys guessable, pushing total losses past $88 million.
Confirmed
Global impact / market context
The breach shows that even popular hardware wallets can contain exploitable bugs, shaking user confidence and prompting investors to reassess the safety of storing Bitcoin in offline devices, which could reduce demand for such products.
Analyst inference
Crypto‑related thefts have risen sharply this year, and regulators are increasing scrutiny of security practices. This incident adds pressure on wallet manufacturers to upgrade firmware quickly, while investors may shift toward diversified custody solutions in the market.
Analyst inference
What to watch
- Coldcard’s next firmware release – a prompt patch would demonstrate responsiveness and could restore trust among current and prospective users for the. Proposed
- Adoption of alternative hardware wallets – investors may favor devices with recent, transparent security audits, affecting market share in the crypto space overall. Analyst inference
- Track additional Coldcard address compromises as attackers may continue exploiting the same firmware flaw, indicating ongoing risk for users who have not updated. Analyst inference
Affected assets
- BTC — Bitcoin