Coldcard Drain Drives Crypto Losses to Record High

Crypto project losses surged to $210.3 million in July, a 177.2% increase from June's total of $75.87 million.

The largest loss came from a Coldcard-linked wallet drain estimated at around $70 million, making it the third-largest theft so far this year, behind only KelpDAO and LayerZero bridge exploits.

Coldcard's vulnerability allowed an attacker to create seeds with less randomness than intended, allowing them to recover stolen funds. Coinkite warned users who generated seeds on affected firmware versions to treat their wallets as potentially exposed.

Bridges, oracles, and governance failures also contributed significantly to the losses, including a $24 million Ostium oracle exploit and a $13 million Wanchain bridge loss due to signature-reuse weakness.