Coldcard Hack Hits $100M But Thieves May Struggle To Spend

A serious security flaw in Coldcard wallet firmware has led to the theft of more than $100 million in Bitcoin. Researchers at Galaxy found that the exploit targeted devices running firmware versions released after March 2021. The issue stems from weak seed phrase generation, which left wallets vulnerable to being guessed by attackers.

While the scale of the theft is massive, market experts are pointing out a major hurdle for the culprit. Because every Bitcoin transaction is recorded on a public ledger, the stolen funds are being tracked by law enforcement, major exchanges, and blockchain investigators. Analysts suggest that this constant surveillance makes it extremely difficult for the thief to move or sell the assets without being caught.

Despite the alarm, the Bitcoin market has remained steady. Investors seem to recognize that this was a failure of the wallet software, not a flaw in the underlying Bitcoin network itself. Prices have held firm, even showing slight gains in the hours following the news.

For those still holding funds on older Coldcard devices, the advice is clear. Users of the Mk3, Mk4, Mk5, and Q devices should move their holdings to a new, secure wallet as soon as possible. While the stolen funds remain mostly stationary, the incident serves as a painful reminder of the importance of randomness in digital security.