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Odaily News: Galaxy Research Head Alex Thorn analyzed that a new wave of Bitcoin sweeping attacks targeting Coldcard wallet addresses is underway, and cumulative losses from vulnerabilities related to Coldcard hardware wallets could approach $114 million. This attack primarily affects single-signature wallets, with no multi-signature wallets found to be impacted so far. No direct victim reports have been received yet; the assessment is mainly based on on-chain transaction pattern analysis, with some attack transactions still in an unconfirmed state.
Odaily News: Major cryptocurrencies moved lower on Monday, with Bitcoin briefly falling to around $62,800 and Ether dropping to $1,858. Although expectations related to the geopolitical situation had improved earlier, the market failed to sustain a rebound. Following the expansion of the Coldcard hardware wallet vulnerability, approximately 1,367 BTC flowed out of roughly 4,585 addresses, valued at nearly $89 million, occurring across three rounds of attacks. The market's weakness stood in contrast to falling crude oil prices, a pullback in U.S. Treasury yields, and gains in stock index futures.
BitGo CEO Mike Belshe posted on social media stating that rather than hyping the narrative of "creating a hacker monster," it is better to conduct real verification. He stated that he has deposited 100 Bitcoins into a BitGo wallet, made the wallet address public, and issued a public challenge to Anthropic.
Odaily News: According to monitoring by Galaxy's Head of Research, a suspected organized Coldcard attack is underway, with similar transactions still in the mempool awaiting confirmation. Previously confirmed transactions show RBF (Replace-By-Fee) enabled. Between blocks 960,778 and 960,792, 218 transactions occurred within approximately 2.5 hours, involving 462 victim addresses, 216 new destination addresses, and 388.92748828 BTC. None of the transactions had inputs predating the Coldcard firmware boundary. The sweep rate during this period was 13.8 times per block, compared to a baseline of 0.3 times per block in the pre-incident control window—approximately 45 times higher. The transaction topology is 1:1, with each victim address corresponding to a single new destination address. Only one destination address received two sweeps, and no consolidation addresses were observed. Some funds have already been swept to second-hop addresses.
: Bitgo CEO Mike Belshe deposited 100 BTC into a public Bitcoin address on August 1, worth approximately $6.3 million at the time, and invited Anthropic's Claude model to attempt to move the funds out of the address. On-chain records show the wallet received the funds on July 31, and the balance had not been transferred out as of August 2. Anthropic previously disclosed that during 141,006 cybersecurity assessment runs, 3 incidents were found, with 6 evaluation sessions involving 3 models inadvertently interacting with real organizational systems. The models involved include Claude Opus 4.7, Claude Mythos 5, and an unreleased internal research model. The cause was a configuration error by third-party testing partner Irregular, which led to the test environment being connected to the internet. Anthropic stated that Claude Opus 4.7, during one evaluation, located a real website with the same name as a simulated company, exploited weak passwords and exposed services to recover infrastructure credentials, and accessed a production database containing hundreds of records. The company said the model was attempting to complete assigned tasks, not actively breaking constraints or pursuing independent goals. Belshe's challenge involves Bitgo's institutional custody platform, which uses multi-signature or multi-party computation technology to distribute signing authority across multiple independent keys. As of August 2, Anthropic had not publicly responded to the challenge.
Odaily News: In the Coldcard security incident involving hardware wallet company Coinkite, the amount of stolen bitcoin has risen to approximately 1,359.882 BTC. According to statistics from the Coldcard Sweep Watch dashboard, most of the identified bitcoin remains in a small number of addresses controlled by the attacker. On August 1, one of the attacker's holding addresses received a transaction containing an OP_RETURN message. The message publicly offered a 10% fee for "washing" bitcoin, KYC assistance, and withdrawal services for stolen funds, along with a Telegram contact. Coinkite has released an urgent firmware update to fix the weak random number generation issue that caused the original vulnerability. The company stated that the new firmware only protects wallets created in the future and cannot fix seeds already generated on affected versions. Some users have reported that after installing the update, their devices remain stuck on an error screen, fail to boot, or appear bricked. This mainly affects Mk4 and Q devices, though some Mk3 users have also reported similar issues. As of August 2, Coinkite has not publicly confirmed a widespread firmware defect.
Odaily News: According to Bitcoin News monitoring, @KevinKelbie is tracking 1,367 BTC stolen since the 2021 RNG vulnerability, involving 4,620 drained addresses. Each BTC has been traced from the victim's wallet to its current location, with a complete timeline of transfers recorded up to July 2026.
Odaily News: Coinkite, the company behind hardware wallet Coldcard, may face legal action from users who collectively lost over 1,300 BTC — valued at more than $88 million — due to a vulnerability in the mnemonic generator of certain models. Thomas Braziel, founder and managing partner of 117 Partners, is investigating product liability claims and potential class action lawsuits against Coinkite, while coordinating efforts to collect information from victims worldwide. Brazilian Bitcoin advocate Felipe Ojeda has filed a police report and will file a complaint against the company in Brazil. Cris Carrascosa, CEO of ATH21, stated that Coinkite does not assume custodial responsibility for user funds tied to its products, and any lawsuit would need to prove that Coldcard could have foreseen the attack. Ana Ojeda, head of institutional business development at Blend, noted that victims do not have an automatic right to full recovery of funds, but an investigation into liability issues can be pursued.
Odaily News: Hardware wallet company Coinkite's Coldcard wallet series has experienced a seed generation randomness vulnerability, with threat actors stealing over 1,000 BTC in the past two days. Galaxy Research data shows that as of Saturday 17:36 ET, the incident involved 1,367 BTC, with losses exceeding $88 million. To notify potentially affected users, Coinkite sent security alerts to email addresses retained through its store and newsletter system since 2019. Coldcard confirmed that the emails originated from Coinkite and stated that it has contacted all reachable addresses to the best of its ability. Coinkite has faced criticism for retaining customer email data. The company stated that its public policy explains that purchase email addresses are saved so customers can log in and verify that other information has been cleared, but it did not specify a deletion timeline, saying these addresses would be kept "temporarily." Coinkite co-founder and CEO Rodolfo Novak previously stated that the company does not store customer information, deletes customer data 90 days after purchase, and offers anonymous purchase options.
Odaily News: Bitcoin News posted on X platform that a 2023 video shows hardware wallet educator @YTCryptoGuide warning that COLDCARD Mk4 allows users to create a wallet with just a single dice roll, which could easily lead users to inadvertently generate extremely weak seeds. He also warned that the interface may lead users to believe their dice roll results would be mixed with the device's hardware RNG, but in certain operational flows, this is not the case. Many advanced users choose to use dice rolls because they do not fully trust hardware RNG. With the discovery of the COLDCARD RNG vulnerability, this video now carries new significance.
Developers on Reddit used Claude Code to scan the Coldcard open-source firmware for vulnerabilities, pinpointing the core issue within 8 minutes: When generating private keys, the firmware invoked a software pseudo-random number generator instead of a hardware true random number generator, and it was this vulnerability that led to the theft of approximately $70 million in BTC from 1,196 wallets. Meanwhile, community users also reported that using Zhipu GLM 5.2 (trained on June 16, offline) for an independent scan similarly discovered this vulnerability. This bug has existed in the open-source wallet code for over five years.
Odaily News, Stacks co-founder Muneeb shared his views on the Coldcard wallet incident, summarizing lessons learned in three areas: Bitcoin storage strategy, quantum computing threats, and ecosystem security building. Regarding Bitcoin storage strategy, he noted that many industry security experts are not even familiar with Coldcard, and top-tier security research institutions may not have conducted thorough audits of its code. Muneeb believes the best approach going forward should be asset diversification rather than concentrating all funds in a single solution, and suggested:1. Allocate 20%-30% of BTC to ETFs, such as BlackRock's Bitcoin ETF IBIT, for professional custody and regulatory protection;2. Allocate 40%-50% of BTC to multisignature solutions like Casa, such as the three-key model, spreading keys across security companies, mobile devices, and hardware wallets;3. Allocate 20%-30% of BTC to more advanced self-custody approaches, combining different hardware wallets and diverse entropy sources.On the quantum computing threat, Muneeb stated that once quantum computers break through existing encryption systems in the future, Bitcoin users may experience a shock similar to "BTC suddenly being transferred out of cold wallets." The quantum threat is real, and the industry should prepare in advance rather than underestimate technological progress, especially against the backdrop of large language models accelerating scientific research breakthroughs.
Bloomberg Senior ETF Analyst Eric Balchunas commented on the Coldcard wallet security incident, questioning whether a company with only about 5 employees is suitable to undertake such critical Bitcoin storage responsibilities. He stated that the number of employees behind Coldcard "seems unbelievably low," asking whether people would be willing to store their life savings in a bank with only 5 employees headquartered in Canada. In the crypto industry, this might be viewed as a feature, but from a traditional finance perspective, it becomes a clear risk signal. Balchunas further stated that, in comparison, institutions with larger teams such as Coinbase and Ledger may hold advantages in security investment and operational capabilities, even if users need to bear higher transaction costs. Bitcoin ETFs offer another option: investors can obtain the security guarantees provided by large, professional, regulated financial institutions while also enjoying lower management fees.
as the suspected hacking incident involving Coldcard wallets continues to unfold, Bitcoin small-value transfers have surged significantly, reaching their highest level since the FTX exchange collapse, reigniting market discussions on Bitcoin self-custody security.Julio Moreno, Head of Research at CryptoQuant, disclosed data on X platform showing that the number of on-chain Bitcoin transfers below 1 BTC has risen to its highest level since November 2022, with approximately 39,600 BTC transferred in a single day—only about 300 BTC below the record of 39,900 BTC set on November 16, 2022, just days after FTX filed for bankruptcy. He believes that users proactively taking action to address risks is a positive signal. Additionally, Eric Balchunas, Senior ETF Analyst at Bloomberg, noted that Bitcoin ETFs, backed by a mature regulatory framework and convenience, may offer some users a safer investment approach.However, industry insiders point out that the Coldcard incident more likely reflects issues with a single wallet provider or specific security processes, rather than indicating a failure of the entire Bitcoin self-custody system. This event once again highlights the importance of security awareness, risk diversification, and wallet usage habits in personal asset management.
Odaily News, January 10 - A Bitcoin and Litecoin holder provided a 12-word recovery phrase to attackers impersonating Trezor support personnel, resulting in the theft of approximately $282 million in assets, including about $139 million in Bitcoin and $153 million in Litecoin. Blockchain forensics firm ZeroShadow stated that the incident stemmed from a social engineering attack, not a compromise of wallet software or private key infrastructure. The stolen funds were split via the THORChain cross-chain bridge within minutes and converted into Monero through instant exchange services. ZeroShadow's monitoring team flagged and froze approximately $700,000 in funds within 20 minutes. Under the BIP39 standard, a 12-word recovery phrase contains approximately 128 bits of entropy, while a 24-word phrase contains 256 bits of entropy. Chainalysis estimates that up to 23% of all mined Bitcoin is permanently inaccessible due to lost keys, involving millions of BTC, with causes including forgotten recovery phrases, damaged backups, and a lack of inheritance planning.
Odaily News: According to monitoring by Galaxy's Head of Research, a victim's Coldcard wallet was compromised in a hacker attack involving nearly 30 BTC, of which 17 BTC were swapped for ETH via THORChain and subsequently deposited into Duel.comcasino. The victim and a researcher have sent emails to all known addresses associated with Duel.comcasino, requesting that the relevant funds be frozen, and provided all transaction and deposit information. The hacker deposited 229.72497255 ETH, valued at $445,000, into Duel.comcasino—funds originating from the Coldcard attack involving approximately 30 BTC. The victim stated that Duel.comcasino responded by saying that the police would need to contact their team. Duel.comcasino's anti-money laundering policy claims it enforces Know Your Customer (KYC) procedures and complies with all applicable laws. Duel.comcasino was notified within minutes of the deposit being completed. To date, Duel.comcasino has not frozen the relevant funds. Since most of the Western world had already passed midnight at the time of the incident, police reports cannot be filed until at least Monday. If Duel.comcasino fails to freeze the funds, the victim will pursue legal action against them. Duel.comcasino's X account has been suspended, and Galaxy's Head of Research has also flagged individuals on X suspected of being associated with the platform, including team members and dealers: @korraflow, @atrois7, @MiaMalkova.
According to CryptoQuant Head of Research Julio Moreno (@jjcmoreno), following the hack of Coldcard hardware wallets, users transferred Bitcoin on a large scale due to security concerns. On-chain data shows that Bitcoin daily active addresses surged from 645,000 on July 30 to nearly 1 million on July 31, marking the highest single-day level since December 10, 2024, with active sending addresses rising significantly while receiving addresses saw relatively limited growth. Meanwhile, daily exchange deposit volume for single transactions under 10 BTC soared to 7,300 BTC, the highest since February 6 this year.
Odaily News, Galaxy Research Head Alex Thorn posted on X platform, stating that the attack targeting wallet addresses with weak random numbers generated by Coldcard is still ongoing. Users who still hold funds in Coldcard single-signature wallets should immediately migrate to secure addresses. New victim addresses and attacker addresses are continuously being added to the investigation database, and Galaxy Research plans to release updated statistics on the number of affected addresses.He noted that the previously identified waves 1, 2, and 3 of the attack exhibit clear programmatic characteristics, and the stolen BTC currently remains in the attacker's addresses without any transfers. However, in recent times, smaller-scale attackers have begun exploiting the vulnerability to steal funds and move them through peeling chains, cross-chain services, and other methods. It is certain that single-signature wallet addresses generated by Coldcard after the March 2021 firmware upgrade are all potentially at risk, and users should migrate funds as soon as possible.Previously reported, Galaxy Research has disclosed that the Coldcard vulnerability attack has affected approximately 1,367.05 BTC (approximately $88.6 million), involving around 4,585 addresses.
Galaxy Research stated in a post on X that the attack targeting wallet addresses generated with weak randomness by Coldcard is still ongoing. The team urges users to immediately migrate funds from affected Coldcard single-signature wallets to secure addresses.They stated that approximately 600 suspected attacker addresses have been submitted to federal investigators, industry compliance bodies, and cross-industry cybersecurity investigators. These addresses are believed to hold funds stolen from Coldcard wallets with weak randomness.The team also noted that victims have proactively shared wallet addresses and transaction hashes, helping researchers establish on-chain attack patterns and further identify more affected wallets and attack addresses. Currently, multiple parties within the Bitcoin and crypto industry are assisting in user asset protection and attack tracing efforts.Galaxy Research previously stated in a post on X that a third wave of attacks suspected to target Coldcard-generated addresses has emerged, with 207.7294 BTC already transferred out. According to on-chain tracking data, the Coldcard wallet attack incident has so far involved approximately 1,367.05 BTC, valued at approximately $88.6 million, affecting 4,585 addresses.
Odaily News: Bitcoin News posted on X platform that a new technical analysis by Core-Lightning developer ddustin shows that the 2021 COLDCARD vulnerability may have originated when developers attempted to connect the wallet using Python code, MicroPython's C code, and the STM32 hardware random number generator. The custom code appears to have conflicted with MicroPython's existing implementation, potentially triggering a compiler error. Evidence suggests that developers subsequently set MICROPY_HW_ENABLE_RNG to 0, allowing the firmware to compile successfully. This change led to unintended consequences: when users created new wallets, the firmware no longer used the hardware random number generator, instead falling back to MicroPython's weaker Yasmarang software random number generator. The commit message left by the developers was only "runs." The analysis states that this serves as a reminder to developers not to release security-critical code they do not fully understand, especially when it protects billions of dollars in Bitcoin.