Galaxy's Alex Thorn: Coldcard Wallet Exploitation Ongoing as Smaller Copycat Attackers Emerge
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Galaxy Research says attacks targeting Coldcard-generated mnemonic phrases remain active, with more small-scale attackers and imitators. Stolen funds are reported at 1,367.05 BTC (~$88.6m) across 4,585 addresses, with at least one case withdrawing before potential freezing on Duel. Ongoing wallet-compromise headlines elevate custody and operational risk, potentially pressuring near-term crypto sentiment and increasing focus on self-custody security practices.
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Galaxy Research Director Alex Thorn said attacks aimed at Coldcard hardware wallets remain active, with a growing number of smaller actors and imitators now targeting remaining Coldcard-generated mnemonic phrases, according to ChainCatcher.
Thorn said that after helping identify a user impacted in one incident, the victim's funds were withdrawn before they could be frozen on the Duel platform. He added that those funds are not tied to the three major attack waves previously flagged by Galaxy Research.
Coldcard was previously reported compromised. Stolen assets have climbed to 1,367.05 BTC, worth about $88.6 million, spanning 4,585 addresses. Thorn urged users who have not yet moved funds to immediately transfer assets out of addresses generated by Coldcard.
