Concern is growing in the cryptocurrency sector regarding a discovered vulnerability in hardware wallets. Galaxy Digital's research unit, Galaxy Research, has warned that the total losses caused by the discovered vulnerability in Coldcard hardware wallets could exceed 2000 bitcoins. The potential losses could be approximately 2055 $BTC, or over 130 million US dollars at current prices.
According to analysis published by Galaxy Research, a total of 1596 $BTC has been stolen as a result of three major attacks and 14 smaller security incidents confirmed to date. The research data indicates these attacks have affected approximately 7300 different bitcoin addresses.
Experts stated that the security vulnerability is caused by a flaw in the random number generation mechanism used in Coldcard devices. It is reported that the flaw affects certain firmware versions used in Coldcard Mk3, Mk4, Mk5, and Coldcard Q models.
The manufacturer, Coinkite, issued an urgent software update after discovering the security vulnerability and advised users to update their devices as soon as possible.
Galaxy Research stated that there is strong evidence that a fourth attack, not yet fully confirmed, was carried out using the same method. If this incident is also included in the total, the number of stolen bitcoins could reach 2055 $BTC.
The investigative team also stated that since the incident, they have been working in coordination with US federal investigative agencies and various cryptocurrency exchanges. Their goal, they said, is to identify the perpetrators and closely monitor the movement of the stolen assets.
Another striking detail in the report was that a significant portion of the stolen funds had not yet been moved. According to Galaxy Research data, approximately 90% of the stolen bitcoins are still held at the addresses where they were originally located. Analysts suggest this may mean the perpetrators have not yet begun to launder or sell the funds.
*This is not investment advice.
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