Coldcard Wallet attack incident escalates as imitators target remaining mnemonics

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A security breach involving Coldcard wallets is escalating, with attackers now targeting residual mnemonics. Galaxy Research’s Alex Thorn reported ongoing attacks, including one in which a user withdrew funds before they could be frozen on Duel. The amount involved was distinct from previous on-chain incidents tracked by the firm. The case has reignited on-chain discussions around hardware wallet security, private key management, and the risks of self-custody.

Odaily Planet Daily reports: Alex Thorn, Research Director at Galaxy, posted that attacks targeting Coldcard wallets are still evolving, with more small-scale attackers and imitators now emerging to target remaining Coldcard seed phrases. He stated that through assistance, he helped identify a user involved in the attack, and the funds were withdrawn before they could be frozen on the Duel platform; these funds do not belong to the three major waves of attacks previously identified by Galaxy Research.

Previously, a suspected security incident involving Coldcard drew market attention, as multiple researchers discovered abnormal fund transfers from wallet addresses generated by Coldcard. Galaxy Research continues to monitor the attack addresses and urges users still using the associated wallet seeds to take immediate security measures. This incident further underscores the importance of hardware wallet security, private key management, and safeguarding against self-custody risks.

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