Hackers Figure Out a Trick to Steal Bitcoin From Cold Wallets, Grab $110 Million
Galaxy Research estimated the theft affected about 7,300 wallets as Coinkite investigated a bug that exposed seed phrases, the company said.
- Canada-Based Coinkite, maker of the Coldcard hardware wallet, confirmed a software bug allowed hackers to reconstruct "seed phrases" and steal $130 million in Bitcoin from thousands of wallets.
- Crypto insights company Galaxy Research estimated that hackers drained around $110 million from around 5,000 wallets last week, with affected wallets growing to at least 7,300 by Monday.
- Victim Johnathan Goodman told Bloomberg his three wallets were completely drained between 9:36 and 9:43 pm on July 29th, while Coinkite launched an "ongoing ecosystem-wide security audit" to identify critical bugs.
- The underlying Bitcoin network remains untouched; meanwhile, Bitcoin spot ETFs attracted $382 million in combined inflows on Aug. 3 and Aug. 4, with 74% flowing to iShares Bitcoin Trust.
- This breach challenges Coldcard's reputation as a security standard, likely pushing many Investors toward trusting large financial services businesses rather than pursuing technical self-custody of Bitcoin.
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Watch Bitcoin Will 'Survive' Cold Wallet Hack, Says Galaxy Digital's Thorn
Alex Thorn, head of firmwide research at Galaxy Digital, joins Isabelle Lee and Tim Stenovec on "Bloomberg Crypto." The crypto community is reeling from a breach involving "cold" Bitcoin wallets made by Coinkite. Hackers were able to steal an estimated $130 million worth of Bitcoin from about 7,300 wallet addresses.
Bitcoin Holds Near $65,000 As Coldcard Hack, Clarity Act Setback Rattle Crypto Markets
Bitcoin (CRYPTO: BTC) is trading around $65,000 after enduring one of its most turbulent weeks in recent memory, battered by a major security breach and a legislative disappointment. The digital asset has remained confined to a narrow band between $60,000 and $65,000 since the end of June, with analysts stressing that a decisive break above the $65,000 resistance level is needed to signal any meaningful recovery. Investors spent much of the week…
Hackers Figure Out a Trick to Steal Bitcoin From Cold Wallets, Grab $110 Million
Hackers made away with more than $100 million worth of Bitcoin from thousands of supposedly secured “cold” wallets hosted by Canada-based company Coinkite. As Bloomberg reports, the hackers managed to infiltrate the wallets despite clients having a physical hardware key associated with their accounts, which was supposed to provide nearly impenetrable security. “The moment it loaded I knew I was screwed because I saw red lines for withdrawals,” o…
Bitcoin history is richer by a scandal. For the self-assured community, the recent hack is a heavy blow.
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