- A firmware exploit targeting Coldcard hardware wallets drained approximately 2,100 BTC, with losses estimated near $130 million across multiple attack waves.
- Onchain data from Checkonchain shows 233,000 BTC left long-term holder wallets in the days around the breach, representing a 1.38% drop in supply.
- Casa CEO Nick Neuman stated that some of the moved Bitcoin came from Ledger and Trezor users, not Coldcard owners, who upgraded to multisig after watching the hack unfold.
The worst hardware wallet exploit in Bitcoin’s recent history unfolded after July 30, with attackers draining Coldcard wallets one address at a time. A firmware bug introduced in March 2021 had routed key generation through a weak software random number generator, collapsing security from 128 bits to roughly 40 bits.
Galaxy Research tracked the fallout across three confirmed attack waves, with losses reaching approximately 1,596 BTC across more than 5,200 addresses. Casa CEO Nick Neuman posted on-chain numbers from analyst James Check of Checkonchain to argue for Bitcoin’s resilience, noting that 233,000 BTC moved out of long-term holder wallets into safety.
“The onchain metrics around the Coldcard incident reinforce how important self-custody is to the resilience of Bitcoin as an asset class,” Neuman wrote on X. Some of that movement came from Coldcard users migrating to multisig wallets, while others on Ledger and Trezor used the hack as a wake-up call.
“So somewhere between ~10x-100x the amount of bitcoin stolen was moved to safety as people sounded the alarm,” Neuman added. Data from analytics company Glassnode confirms the scale: long-term holder supply dropped from nearly 15 million BTC to approximately 14.7 million, the largest weekly decline since December 2024.
Coinkite has urged anyone who generated a seed on firmware versions 4.0.1 through 4.1.9 to treat those wallets as compromised and migrate immediately. “This is a giant flashing neon sign showcasing the resilience that self-custody adds to the network,” Neuman wrote.
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