Coldcard Victims Targeted by Controversial Claims Broker

Thousands of people who lost bitcoin in the recent Coldcard wallet hacks are now being contacted by Thomas Braziel, a man previously involved in a major legal dispute. Braziel, who now leads a firm called 117 Partners, is actively soliciting victims on social media to join a potential legal action. He is currently directing those affected into a private Telegram channel.

This outreach is raising concerns due to Braziel's past history as a corporate receiver. A Delaware court removed him from his role in a previous case after finding he created falsified bank records and account statements. The court ordered him to repay nearly two million dollars, an amount he eventually returned, though he was not criminally charged for those actions.

Legal experts suggest that victims should be cautious about these unsolicited offers. The manufacturer of Coldcard, Coinkite, has terms of sale that route disputes into specific arbitration processes under Ontario law. These terms also include strong disclaimers that limit liability, which could make class action lawsuits difficult for victims to pursue.

Since late July, hackers have drained over 1,500 bitcoin from thousands of Coldcard addresses. With total losses estimated to exceed 100 million dollars, many victims are understandably desperate for help. However, given the track record of those now soliciting claims, users should exercise extreme caution before sharing sensitive information or joining legal groups.