Coldcard Bitcoin losses near $114M as small holders move funds
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IN SHORT
Coldcard hardware wallets are facing a significant exploit, with losses potentially reaching $114 million. A fourth wave of bitcoin sweeps targeting these wallets is currently underway. The exploit has caused approximately $89 million to be drained, prompting small Bitcoin holders to move funds at a rate not seen since the FTX collapse. This news has contributed to a drop in Bitcoin's price below $63,000, overshadowing positive macroeconomic signals.
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Key Numbers
$114 millionpotential total losses from Coldcard exploit
$89 millionamount drained from Coldcard wallets
$63,000Bitcoin price below which it fell
Who's Involved
Coldcard
hardware wallet manufacturer facing a significant exploit
Bitcoin
cryptocurrency experiencing price decline due to exploit
Ether
cryptocurrency experiencing price decline
small Bitcoin holders
moving funds at a high rate due to exploit
FTX
exchange collapse used as a benchmark for fund movement
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Key facts
Coldcard hardware wallets are experiencing a significant exploit.
Potential total losses from the exploit could reach $114 million.
A fourth wave of bitcoin sweeps targeting Coldcard wallets is underway.
Approximately $89 million has been drained due to the exploit.
Small Bitcoin holders are moving funds at a high rate.
The rate of fund movement by small holders is comparable to the period after the FTX collapse.
Bitcoin's price dropped below $63,000.
Ether also experienced a decline in price.
The crypto market weakness contrasted with positive macroeconomic signals.
Falling oil prices and Treasury yields were among the positive macroeconomic signals.
Coldcard hardware wallets are currently experiencing a significant exploit, with potential total losses escalating towards $114 million. A fourth wave of bitcoin sweeps targeting these compromised wallets is in progress. Approximately $89 million has already been drained from affected wallets due to the exploit. This situation has led to a notable outflow of funds from small Bitcoin holders, a trend not observed since the collapse of FTX. The negative sentiment surrounding the Coldcard exploit has impacted the broader cryptocurrency market, with Bitcoin falling below $63,000 and ether also experiencing a decline. This market weakness occurred despite generally positive macroeconomic indicators, such as falling oil prices and decreasing Treasury yields, which typically would support risk assets. The exploit has raised concerns about the security of hardware wallets and the broader implications for cryptocurrency storage and investor confidence.
Frequently asked questions
A firmware flaw in certain Coldcard versions from March 2021 allowed attackers to generate guessable seed phrases, enabling them to steal bitcoin from affected wallets.
Estimated total losses across four waves are approaching $114 million, or approximately 1,816 bitcoin.
Some recent transactions are using replace-by-fee, allowing victims to potentially outbid the attacker with higher fees to reclaim their bitcoin before confirmation.
Users are advised to update their Coldcard firmware and move any funds to a new wallet generated with a fresh seed.
What Happens Next
01Victims are advised to monitor the mempool and potentially bid up transaction fees to recover funds.
02Users with affected Coldcard devices are urged to update firmware and move funds to new, secure wallets.
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