$111 Million Dogecoin Hack Exposes Wallet Security Flaw
A Dogecoin community member has issued a warning to users after a significant breach of Coldcard wallets led to substantial losses for crypto holders. The incident, confirmed by Galaxy Research, resulted in the theft of $111 million from user wallets after an attacker drained 1,719 BTC on July 30, 2026.
This exploit is considered the third-largest crypto hack of 2026 and may reach up to $130 million in total losses as some compromised coins have not yet been fully quantified. Galaxy Research attributed the breach to a firmware bug present since March 2021, which weakened the seed generation randomness on some Coldcard wallets.
Mishaboar has repeatedly highlighted the dangers posed by these vulnerabilities since early August and continues to provide educational resources and practical advice aimed at protecting users' crypto assets in the wake of these incidents. He emphasizes that hardware wallets are engineered to store private keys and recovery seeds within a dedicated chip, disconnected from the internet, offering an additional layer of security from remote attacks.
Mishaboar also warns about the risks associated with software wallets, which typically run on internet-connected devices like computers or smartphones. He notes that smartphone wallets bring particular security challenges and that most users have no practical method to assess the risks associated with any given software wallet.