Coldcard Hardware Wallet Hack Swells to $1.16B; 1,816 BTC Moved From More Than 5,200 Addresses

Huoxing Finance reports that the attack involving Coldcard hardware wallets has grown to roughly $1.16 billion, with attackers moving 1,816 BTC from more than 5,200 addresses. Galaxy Research said it has confirmed a fourth wave of transfers and revised the amount moved in that wave to about 449 BTC. Alex Thorn, head of Galaxy Research, said the latest activity could represent a "fourth organized theft." Transfer intensity has climbed to 13.8 transactions per block, roughly 45 times the pre-incident baseline. Galaxy's analysis suggests the on-chain pattern is consistent with multiple groups scanning the compromised key space at the same time. Investigators have traced the issue to a 2021 firmware update affecting certain Coldcard devices that altered seed generation from a hardware-based random source to a predictable software-based pattern. Coinkite, the Canadian maker of Coldcard, is urging users who created wallet seeds on affected devices to move funds to a new, secure wallet as soon as possible.