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Galaxy Research ties Coldcard exploit to 1,196 addresses and up to 1,083 BTC drained

first published 2026-07-31T09:02:01Z
Bitcoin Security Hack
Coinkite said a build error in Coldcard firmware caused seed generation to fall back to software randomness instead of hardware randomness, making affected wallets easier to guess and exposing users to tens of millions of dollars in Bitcoin losses. The company says an attacker may have used AI to find the flaw in its open-source code, issued emergency firmware updates, and warned that seeds already created on affected devices remain weak and must be replaced or migrated.
AI Analysis
The summary describes a wallet security flaw that exposed Bitcoin holdings to theft and required emergency firmware updates. It directly involves losses, vulnerable seeds, and immediate remediation, which are material short-term market facts for Bitcoin and wallet-security sentiment.
Expected Investor Sentiment: Very Bearish
Potential Market Impact: High
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