ChainCatcher report: The Coldcard hardware wallet attack has expanded to approximately $1.16 billion, with attackers transferring 1,816 BTC from over 5,200 addresses. Galaxy Research confirmed a fourth wave of transfers, revising the amount moved in this wave to approximately 449 BTC. Alex Thorn, head of Galaxy Research, stated that the latest activity may represent a “fourth organized theft wave,” with transfer rates reaching 13.8 transactions per block—about 45 times the pre-incident baseline. Their analysis suggests the pattern indicates multiple groups may be simultaneously scanning the compromised key space. The root cause has been traced to a firmware update in 2021 for certain Coldcard devices, which changed the wallet seed generation process from a hardware-based random source to a predictable software-based pattern. Canadian manufacturer Coinkite advises users who generated wallet seeds on Coldcard devices to move their funds to a new, secure wallet as soon as possible.
Coldcard Hardware Wallet Attack Rises to $116M, Over 5,200 Addresses Impacted
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Summary
A replay attack on Coldcard hardware wallets has reached $116 million, with 1,816 BTC drained from over 5,200 addresses. Galaxy Research confirmed a fourth wave, moving 449 BTC. Alex Thorn called it a “fourth round of organized theft,” noting 13.8 transactions per block—45 times the normal rate. The vulnerability stems from a 2021 firmware update that shifted seed generation to a predictable model. Coinkite urged users to move their funds. A reentrancy attack may also have contributed to the theft.
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