Galaxy Digital: At Least 15 Actors Exploited Coldcard Flaw; One Undetected Campaign Took 12 BTC

Odaily Planet Daily reports that Alex Thorn, research director at Galaxy Digital, said newly received victim reports indicate at least 15 attackers have exploited the Coldcard vulnerability. Thorn noted that victim-supplied details allowed the research team to surface previously unidentified attack activity. Because the technique differs from patterns typically seen in centralized exchange breaches, linking the actors requires onchain analysis combined with victim feedback. He added that a single victim report involving under 1 BTC in losses helped the team uncover an earlier unrecognized campaign that stole about 12 BTC from 126 addresses. Galaxy Research previously estimated the vulnerability has been exploited in at least three waves, with BTC losses totaling roughly $100 million. Galaxy has also identified a suspected fourth attack that could lift total losses to around $130 million. The incident has reignited debate over Bitcoin self-custody security. Dragonfly managing partner Haseeb Qureshi argued that an AI-driven security improvement costing about \u0022$2\u0022 could have prevented the issue, adding that some AI models may be able to rediscover the flaw quickly. Industry experts cautioned, though, that claims about how fast AI can find vulnerabilities have not been backed by rigorous blind testing and verification. Researchers say that as AI model capabilities advance, the cost of discovering and exploiting vulnerabilities across the crypto sector may keep falling, increasing pressure on wallet developers to tighten code audits and security safeguards. (Cointelegraph)