Coldcard Exploit Drives $247M in Crypto Losses

A recent exploit of the Coldcard hardware wallet has resulted in significant losses for users. The hack, which was first reported in February 2023 by Kraken Security Labs, enables seed extraction without knowing the PIN. Hackers linked to this exploit have transferred millions of dollars' worth of cryptocurrency to mixers.

The total amount stolen through the Coldcard vulnerability is estimated at around $247.4 million. This figure has been driven by a series of hacks targeting users who store their private keys offline, leaving them vulnerable to seed extraction without needing the PIN. The hackers have transferred 64 BTC ($4.17 million) and 200 ETH ($380,000) to crypto mixers.

The Coldcard hacker's wallet has been receiving permanent messages via OP_RETURN since July 30, with some users paying to leave their names or a message on the wallet. The wallet itself holds around $36 million in stolen bitcoin. The recent hack has renewed debate over whether institutional custody in Bitcoin ETFs offers safer protection.