Bitcoin Loses $90M as Coldcard Users Fall Victim to Wallet Flaw

Coldcard users lost an estimated $90 million in Bitcoin after a flaw was discovered in the wallet's seed generation process. The issue, which failed to use a genuinely random number generator, allowed hackers to drain funds from affected accounts.

The incident sparked panic among smaller holders, who rushed to transfer their assets to centralized exchanges and alternative custody solutions. This resulted in a significant surge in on-chain transactions, with 39,600 BTC moved on Friday alone.

Galaxy Research estimated that the damage from the attacks amounted to around $88.6 million, spread across 4,585 addresses. The firm's head of firmwide research, Alex Thorn, warned users to move their funds immediately and noted that the flaw was still live.