A Coldcard exploit has been linked to a hack that reporting has valued at roughly $116 million, with the incident stretching into a fifth day and the wallet maker Coinkite issuing security warnings to users of its hardware devices.
Reporting on the incident has tied the losses to Coldcard hardware wallets, with one account describing the wallet losses as approaching $114 million as a possible fourth sweep emerged. The figures remain fluid, and the exact total attributed to the exploit has been reported as an estimate rather than a confirmed accounting. For related coverage, see ZeroStack warns of survival risk after $82.5 million loss.
Coinkite, the company behind Coldcard, has published guidance addressing the situation, including a seed generation warning for the Coldcard Mk3. Details on the affected units and the scope of impacted funds are still being clarified by the vendor.
Kanalcoin has tracked the developing story, including coverage as the Coldcard exploit entered its fifth day amid security concerns and separate reporting that the Bitcoin hack neared $114 million in potential losses.
What remains unclear about how the exploit was used
The precise technical pathway of the exploit has not been established in the available reporting. Coverage has centered on a possible seed generation weakness referenced by Coinkite, but a full forensic breakdown of the attack method has not been published.
A possible fourth sweep of funds has been reported as the losses mounted, though the number and timing of these movements should be treated as preliminary until independently confirmed. Technical conclusions about the exploit mechanism remain unverified.
Open questions include how many devices were exposed, whether the issue is limited to specific hardware revisions, and what on-chain evidence links the swept funds to a single actor. These forensic details had not been fully resolved in the reporting reviewed.
Why the case matters for self-custody users
The incident has broader relevance for anyone holding assets in hardware wallets, since a compromise tied to seed generation would touch the core trust assumption of self-custody. Coinkite’s public updates, including its weekend status post, are the primary channel users have been directed toward for guidance.
The event has coincided with weakness in broader crypto markets, with reporting noting that Bitcoin and Ether declined as the Coldcard exploit entered a fifth day. The extent to which the two are directly connected has not been quantified.
- What happened: An exploit tied to Coldcard hardware wallets has been linked to losses reported near $114 million to $116 million.
- What is confirmed: Coinkite has issued a seed generation warning and ongoing status updates.
- What is unclear: The full technical mechanism, the exact loss total, and the number of sweeps remain unverified.
- What to watch: Further vendor guidance and forensic updates on affected devices.
Users should monitor Coinkite’s official channels for follow-up guidance and any forensic disclosures. The context has also been captured in the August 2 Hodler’s Digest coverage of the exploit.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
