THE COLDCARD hardware wallet has experienced a significant security breach resulting in the theft of 1,367 BTC, valued at approximately $88.6 million, from 4,585 wallets. This exploit occurred in three waves beginning on July 30, 2026, with the first wave being the largest, draining over 1,082 BTC. The attackers utilized a flawed random-number algorithm which generated predictable private key seeds.
After the incidents, centralized exchanges noted a surge in Bitcoin deposits, likely as users attempted to secure their assets. This situation underscores vulnerabilities in hardware wallets when manufacturers' algorithms have flaws, leading users to mistakenly believe they are safer than they are. COLDCARD is unable to rectify the situation remotely, urging users to transfer their funds and update their firmware as many remain unaware of the breach.