Coldcard Hack Sparks Bitcoin Rush, $114M Stolen In 4th Wave
Transfers of less than 1 BTC reached 39,600 BTC on July 31, the highest volume since theFTXcollapse in 2022, according to CryptoQuant. Daily active addresses surged from 645,000 to nearly one million, the. . .
Transfers of less than 1 BTC reached 39,600 BTC on July 31, the highest volume since theFTXcollapse in 2022, according to CryptoQuant. Daily active addresses surged from 645,000 to nearly one million, the highest level since December 2024, as small holders moved funds after news of the Coldcard flaw. Galaxy Researchflagged a likely fourth wave of thefts related to the exploit, potentially bringing total losses to roughly 1,816 BTC, or about $114 million. SmallBitcoinholders moved coins on July 31 at a rate not seen since the collapse of FTX, according to CryptoQuant, as news spread that Coldcard hardware wallets had been generating guessable keys for five years. Transfers of less than 1 BTC totaled 39,600 BTC, worth around $2. 5 billion, the firm’s Head of Research Julio Morenotweeted. - Advertisement -The last comparable figure was 39,900 BTC on November 16, 2022, days after FTX failed. Daily active addressesrosefrom 645,000 on July 30 to almost a million on July 31, the highest since December 2024. Some funds moved to exchanges, with deposits of sub-10 BTC hitting 7,300 BTC ($459 million) on July 31, the most since February 6. Moreno linked the activity to the Coldcard breach, suggesting people were shifting holdings “looking for safety,” though he noted the connection was not certain. Notably,Bitcoin’s pricebarely moved amid the wave of exchange deposits, indicating users moved coins to secure them rather than sell. The Coldcard flaw dates to a March 2021 firmware build error that left seed phrases drawn from a far too small pool. Galaxy Researchlogged three waves of thefts by Saturday, totaling 1,367 BTC across 4,585 addresses. A fourth wave is likely under way, withGalaxy Research‘s Alex Thornflaggingsweeps across 15 consecutive blocks running at 45 times the normal rate. Hecorrecteda set that included multisig addresses, putting the wave at 709 addresses and 448. 73 BTC ($28 million). Thornadded a caveatthat no victim has yet confirmed the fourth wave, which rests on pattern matching. Some sweeps still sat unconfirmed in the mempool and had opted into replace-by-fee, meaning holders who act quickly may outbid the attacker. Krakenchief security officer Nick Percococalledthe incident a “wake-up call for the entire hardware wallet industry. ” He noted that ColdCard’s Mk4, Mk5 and Q ship with certified secure elements, yet their seeds still came out around 72 bits because the certification covered the component while nobody verified which code path ran. - Advertisement -✅ FollowBITNEWSBOTonTelegram,Facebook,LinkedIn,X. com, andGoogle Newsfor instant updates. Previous Articles:Bitget to Exit Japan, Close Remaining Positions After Dec 31FaceHugger flaws in Hugging Face Diffusers allow AI supply chain attacksBezos, Nvidia Join Forces to Fix Chip Materials ShortageNew Coldcard attack wave steals 389 Bitcoin; Thorn warnsColdcard Hack Ongoing: $88M Stolen in Three WavesStay in the Loop🔥Join 1. 2K Smart TradersGet exclusive crypto insights, breaking news, and market analysis delivered straight to your inbox. No fluff, just facts.