Bitcoin News

Story: Galaxy Research Puts Coldcard Bitcoin Loss at $70.2M Across 1,196 Wallets

By Steven Anderson

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What the Transaction Pattern Showed. Galaxy Research's analysis found some very specific fingerprints in the attack transactions.

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Why the Hotfix Isn't Enough for Everyone. Novak was blunt about this: the update doesn't secure seeds that were already generated on the…

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Investigation Still Open. Coinkite hasn't finished its investigation. The full scope of the incident is still undetermined,…

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Galaxy Research, the research arm of crypto investment firm Galaxy Digital, tracked down 1,196 Coldcard wallet addresses that bled out 1,082.65 Bitcoin — roughly $70.

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The Bitcoin movements happened between 1:10 AM and 1:51 AM UTC on July 30, spread across blocks 960,183 through 960,191.

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Galaxy Research's analysis found some very specific fingerprints in the attack transactions. Uniform fees of 30 satoshis per virtual byte. No change outputs.

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But here's the catch — Galaxy Research was clear that future attacks on Coldcard-generated addresses probably won't look the same.

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Coinkite co-founder Rodolfo Novak didn't dodge responsibility. He acknowledged the firmware bug directly and said the company is taking ownership of the lapse.

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That's the good news. The bad news is harder to fix.

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Related: CoinFlip-Style Hardware Hack: $70 Million Gone From 1,196 Coldcard Wallets

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Coinkite's guidance is straightforward. If you generated a seed on the affected firmware, move your funds to a new seed now. Don't wait for more details.

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Hardware wallets have long been considered the gold standard for self-custody in crypto. The pitch has always been that keeping your keys offline, on a dedicated device, is safer…

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The $70.2 million figure is a reminder of how concentrated losses can get in a short burst. Forty-one minutes. Roughly 1,200 wallets. The speed of it is almost hard to process.

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Coinkite hasn't finished its investigation. The full scope of the incident is still undetermined, and the company hasn't released details on what additional protective measures…

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More context: Coldcard Firmware Bug Drained Bitcoin Wallets Worth Nearly $70 Million

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