Coldcard Wallet Attacks Persist as Copycat Actors Target Remaining Seed Phrases
AI Market Summary
Galaxy Research reports ongoing attacks targeting Coldcard-generated mnemonic phrases, with more small-scale imitators emerging. Stolen funds reportedly total 1,367.05 BTC across 4,585 addresses, and some flows have already exited venues before potential freezes. The continued exploit risk reinforces operational and custody concerns around hardware wallets, potentially weighing on near-term crypto risk appetite and prompting defensive behavior from affected holders.
Impact level
● Medium
Affected assets
BTC/USDT+0.03%
AI Insight · BTC/USDTAI Insight
▼ Bearish
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Huoxing Finance reported that on Aug. 2, Alex Thorn, Head of Research at Galaxy Research, said attacks targeting Coldcard Bitcoin hardware wallets remain ongoing. Thorn noted that a growing number of smaller actors and imitators are now attempting to exploit remaining Coldcard mnemonic phrases.
He added that, with assistance, the identity of one user who received funds tied to the attack was confirmed. The assets were withdrawn before they could be frozen on the Duel platform, and Thorn said those funds are not part of the three major attack waves previously identified by Galaxy Research.
As previously reported, the Coldcard compromise has been linked to 1,367.05 BTC in stolen funds, worth about $88.6 million, across 4,585 addresses. Thorn urged users who have not yet moved their funds to immediately transfer assets out of addresses generated by Coldcard.
