Security researchers have confirmed that a flaw in the Coldcard hardware wallet is being used to move Bitcoin from at least 4,500 addresses, with total losses estimated at close to $89 million. The operation has involved the rapid transfer of roughly 39,600 BTC in a series of small transactions, marking the largest sub‑1‑BTC movement since the fallout from the FTX collapse.
Scope of the Attack
The breach, first identified in early June, did not require physical possession of the wallets. According to The Hacker News, the exploitation allowed thieves to drain about $70 million in just 41 minutes, while Crypto News reported a third wave that pushed total stolen value to $88.6 million. Figures differ among outlets: BloomingBit cites 1,359 BTC (around $85 million), 24/7 Wall St. mentions $70 million, and theStreet.com puts the total at $75 million. All sources agree the attack remains active and is still propagating to new addresses.
“Attacks are ongoing,” warned a security analyst, urging users to treat the incident as a “urgent warning” amid fears of a broader market impact.
Coldcard’s manufacturer has not confirmed the specifics of the vulnerability, but the consensus among investigators is that the flaw bypasses the device’s offline security model, allowing attackers to generate valid transaction signatures without ever touching the hardware.
Impact on the Bitcoin Market
The sudden outflow of billions of satoshis has rattled both crypto‑savvy investors and the broader financial community. Forbes highlighted concerns that the hack could trigger a price correction, while Yahoo Finance UK projected that Bitcoin might slip back toward $60,000 if panic selling intensifies. On the day the breach was disclosed, Bitcoin’s price hovered around $28,600, a modest decline from its recent highs.
Industry figures have weighed in. Binance founder Changpeng Zhao told Bitcoin World that “no hardware wallet is 100% safe,” emphasizing the need for diversified storage strategies. Strike CEO, cited by Yahoo Finance, described the incident as “one of the most serious Bitcoin hacks” he has seen, underscoring the potential systemic risk if similar exploits surface.
Security Implications and Recommendations
Experts are urging users to audit their holdings, move funds to freshly generated seed phrases, and consider multi‑signature solutions. Cointelegraph warned that the pattern of small, rapid transactions suggests the attackers are testing the network’s detection thresholds, making timely forensic analysis critical.
While the exact method of compromise remains under investigation, the episode has reignited debate over the balance between convenience and security in cryptocurrency storage. As the investigation continues, regulators and exchanges are likely to scrutinize hardware‑wallet standards more closely, and investors may reassess the risk profile of custodial versus self‑custody solutions.
The Coldcard hack stands as the most significant hardware‑wallet breach in Bitcoin’s history, with reported losses ranging from $70 million to nearly $89 million. Its ongoing nature serves as a stark reminder that even “cold” storage is not immune to sophisticated attacks, and that vigilance remains essential for safeguarding digital assets.
Market Snapshot
| Asset | Price | 24h | Market Cap |
|---|---|---|---|
 Bitcoin BTC | $63,222 | +0.20% | $1268.5B |
 Ethereum ETH | $1,869 | -0.10% | $225.5B |
 BNB BNB | $583.15 | -1.10% | $77.7B |
 XRP XRP | $1.08 | +1.70% | $67.5B |
 Solana SOL | $73.28 | +0.30% | $42.6B |
 Dogecoin DOGE | $0.0701 | +0.20% | $10.9B |
 Cardano ADA | $0.187 | +8.50% | $7.0B |
Live data: CoinGecko — 2026-08-02 09:20 UTC
