#ColdcardLossesGrow

#ColdcardLossesGrow Coldcard Losses Grow: Crypto Security Comes Under the Microscope The **#ColdcardLossesGrow** narrative is drawing attention after reports of a serious vulnerability affecting certain Coldcard-generated Bitcoin wallets. Recent reporting says the losses linked to the flaw have continued to increase, with estimates reaching more than **1,500 BTC** and potentially over **$100 million** in stolen funds. ([crypto.news][1]) The incident is significant because hardware wallets are designed to provide strong protection for cryptocurrency keys. Reports indicate that the underlying issue involved insufficient randomness when certain wallet seeds were generated, potentially making affected wallets vulnerable. The problem demonstrates that even security-focused hardware can be exposed to software or firmware flaws. The episode also highlights an important distinction: **Bitcoin's underlying blockchain was not itself compromised**. The reported losses relate to vulnerable wallet-generation processes rather than a failure of Bitcoin's consensus mechanism. For the wider crypto industry, the incident could increase attention on firmware security, independent audits, cryptographic randomness, responsible disclosure, and transparent security advisories. It also reinforces the importance of following official manufacturer guidance when a security issue is announced. The situation remains significant for the broader self-custody ecosystem. Users increasingly rely on hardware devices to protect digital assets, so confidence in wallet security is essential for long-term adoption. Ultimately, **#ColdcardLossesGrow** is a reminder that cryptocurrency security requires multiple layers of protection. Strong technology can reduce risk, but no single device or security method should be treated as completely immune to vulnerabilities. **$BTC $ETH $SOL $BNB $XRP** **#ColdcardLossesGrow #Bitcoin #CryptoSecurity #Blockchain #Crypto**

After falling to a 2 year low, the CDD (30-dma) is currently trending back up. This indicates that long term holders are destroying UTXOs by moving $BTC that has been held for more than 6 months. CDD (Coin Days Destroyed) is a metric that accounts for the number of days a UTXO was held before being spent. The longer it was held, the higher its CDD contribution, which allows us to gauge LTH activity. — At first glance, this could suggest that LTHs are intensifying their movements and therefore their selling, since a large amount of LTH $BTC moving usually translates into increased sell pressure. But this reading is biased by the Coldcard event, which pushed many LTHs to move their BTC in order to improve its security. This is visible in LTH spent UTXOs, which spiked at the end of July, at the same time.

🚨 Galaxy Research says at least 1,719 $BTC worth $111M, has been stolen in the Coldcard exploit, with total losses likely exceeding $130M.

#ColdcardLossesGrow # Coldcard Losses Grow: A Major Reminder About Crypto Security The **#ColdcardLossesGrow** narrative is drawing attention after a serious security incident involving Coldcard hardware wallets. Reports indicate that attackers exploited a firmware vulnerability affecting the generation of wallet recovery seeds, resulting in substantial Bitcoin losses. More than 1,000 BTC was reportedly stolen in an initial wave, with estimates of total losses continuing to rise. ([Barron's][1]) The incident is significant because Coldcard is designed specifically for Bitcoin self-custody and is widely associated with offline security. The reported vulnerability highlights an important principle: keeping a device offline does not eliminate risks if the underlying cryptographic processes are flawed. The issue reportedly involved insufficient randomness during wallet creation, making some recovery seeds potentially predictable. Security researchers linked the attacks to vulnerable firmware, while the manufacturer has acknowledged the issue and issued warnings concerning affected wallets. ([New York Post][2]) For the wider crypto industry, the incident could increase attention on hardware-wallet security, firmware verification, recovery procedures, and independent security audits. It also demonstrates why claims that any single storage method is completely risk-free should be treated cautiously. Bitcoin itself, represented by **$BTC**, remains unaffected at the blockchain protocol level; the reported problem concerns specific wallet-generation software and affected devices. The broader lesson from **#ColdcardLossesGrow** is that cryptocurrency security depends on multiple layers of protection. Users and investors should follow official security advisories and avoid relying on unverified social-media claims when dealing with sensitive financial information. **$BTC $ETH $SOL $BNB $XRP** **#ColdcardLossesGrow #Bitcoin #CryptoSecurity #Blockchain #Crypto**

affected Coldcards generated seeds with a deterministic PRNG, limiting the weakness to those seeds. the confirmed 1,719 BTC set equals 0.0082% of Bitcoin's cap, BTC closed 0.22% higher from July 30 to August 8. so Coldcard trust takes the hit while BTC impact stays near-neutral.

At least 1,719 $BTC , worth $111 million, has been confirmed stolen in the Coldcard supply chain exploit Galaxy estimates total losses are likely to exceed $130 million as additional compromised wallets are identified and on-chain analysis continues The stolen Bitcoin has not yet been moved, with researchers continuing to monitor the attacker's wallets while exchanges, wallet providers and blockchain analysts work to identify affected users

After falling to a 2 year low, the CDD (30-dma) is currently trending back up. This indicates that long term holders are destroying UTXOs by moving $BTC that has been held for more than 6 months. CDD (Coin Days Destroyed) is a metric that accounts for the number of days a UTXO was held before being spent. The longer it was held, the higher its CDD contribution, which allows us to gauge LTH activity. — At first glance, this could suggest that LTHs are intensifying their movements and therefore their selling, since a large amount of LTH $BTC moving usually translates into increased sell pressure. But this reading is biased by the Coldcard event, which pushed many LTHs to move their BTC in order to improve its security. This is visible in LTH spent UTXOs, which spiked at the end of July, at the same time#CPIToResetFedBets #AIMemorySelloffEases #BTCETHETFInflowsReturn

UPDATE: Coldcard-related loss estimated about $130M, while manufacturer Coinkite says it cannot confirm the amount, per Bloomberg. $KITE

The onchain metrics around the Coldcard incident reinforce how important self custody is to the resilience of Bitcoin as an asset class. In the couple of days around the hack: - 2.1k BTC was stolen - 22k moved to exchanges - 233k moved out of long term holder wallets in on chain transactions We at Casa know (based on actual customer conversations) some of the 233k was people moving from non-Coldcard single sig (ie Ledger, Trezor) to multisig wallets, because they realized single sig wasn’t secure enough for their needs. And other coins were moved from multisig->multisig as people removed Coldcard from their keyset. So somewhere between ~10x-100x the amount of bitcoin stolen was moved to safety as people sounded the alarm. This is a giant flashing neon sign showcasing the resilience that self custody adds to the network. If all that BTC was held at a custodian and the custodian was hacked instead, those numbers would have been flipped. A little bit might have gotten out the door to safety, and most would be stolen. As it was, the thieves had to crack one wallet at a time (and are still going), earning a little BTC each wallet, instead of cracking one wallet and getting a massive payday. And the asset price (and confidence) would have certainly taken a much bigger hit. Self custody is not just good for Bitcoiners, it is good for Bitcoin. H/t to @_Checkmatey_, @intangiblecoins, @SaniExp for the data

Coldcard Firmware Exploit: $111M+ Bitcoin Stolen | What Every $BTC Holder Must Know The largest hardware wallet exploit of 2026 is still unfolding. So far, 1,719 BTC (~$111M) has been confirmed stolen, while researchers believe total losses could exceed $130M. What Happened? → A firmware bug introduced in March 2021 caused affected Coldcard devices to generate seed phrases using weak software randomness instead of the hardware TRNG. → This reduced seed entropy from 128 bits to as low as 40 bits, making offline brute-force attacks possible. → The vulnerability affected wallet key generation, not the Bitcoin network itself. Latest Findings (Galaxy Research) ✅ 1,719 BTC (~$111M) confirmed stolen ✅ 7,300+ wallet addresses compromised ✅ 15+ attacker groups identified using 25+ attack patterns ✅ Total losses could surpass $130M 2026 has already witnessed $1.2B+ in crypto stolen across 276 separate security incidents. Nearly 10% of those losses came from the Coldcard exploit alone, making it one of the largest crypto security failures of the year. Who Is at Risk? ⚠️ Mk2/Mk3 firmware 4.0.1–4.1.9 ⚠️ Mk4/Mk5 firmware before 5.6.0 ⚠️ Coldcard Q firmware before 1.5.0Q What Should You Do? ✅ Update to the latest firmware immediately. ✅ If your wallet was created using affected firmware, generate a completely new seed phrase and move your BTC. ✅ A firmware update alone does not secure an old seed. ✅ Use a BIP-39 passphrase, multisig, and manual dice-roll entropy to strengthen wallet security. As Galaxy Research noted, "Not your keys, not your coins" only works if your keys are securely generated. Self-custody doesn't eliminate trust, it transfers trust to your hardware, firmware, and seed generation process. Protect your Bitcoin with multiple layers of security instead of relying on a single device.