Alex Thorn, Head of Research at Galaxy, stated that attacks targeting Coldcard wallets are still evolving, with an increasing number of smaller attackers and imitators now focusing on the remaining Coldcard mnemonic phrases. He noted that through assistance provided, the identity of a user whose funds were deposited in the attack was confirmed, and the funds were withdrawn before they could be frozen on the Duel platform; these funds do not belong to the three major waves of attacks previously identified by Galaxy Research.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 observed unusual fund transfers from certain wallet addresses generated by Coldcard devices. Galaxy Research continues to monitor the attack addresses and urges users still using the affected wallet seeds to take immediate security measures. This incident further underscores the importance of hardware wallet security, proper private key management, and mitigating self-custody risks.
Head of Galaxy Research Warns of Ongoing Attacks on Coldcard Wallet Recovery Phrases
TechFlowShare
Summary
Galaxy Research head Alex Thorn warned that ongoing attacks targeting Coldcard wallet recovery phrases employ replay attack tactics. He referenced a confirmed case in which funds were drained before being frozen on the Duel platform, unrelated to previous major attack waves. Researchers have detected unusual fund movements from Coldcard wallet addresses, raising concerns about potential reentrancy attack risks. Galaxy Research is monitoring attack-related addresses and urging users to secure their seed phrases. The incident underscores the importance of hardware wallet security, private key management, and the risks associated with self-custody.
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