Coldcard Exploit Nets $111M as Investigators Uncover Widespread Attack Patterns

The Coldcard exploit has resulted in significant losses for its victims, with at least $111 million stolen from over 1,719 Bitcoin wallets. According to Galaxy Research, this figure could rise to over $130 million if certain cases are confirmed. The investigation revealed that the attack occurred due to a flaw in firmware released after March 17, 2021, which compromised wallet-seed security or generation.

The attackers were able to access the funds without physically compromising the Coldcard wallets. This vulnerability was exploited by multiple threat actors across three waves, with over 25 different attack patterns identified. The impact of the exploit was widespread, with over 250 victims reporting losses.

Galaxy Research noted that not all Coldcard wallet models were affected, but those using Mk3, Mk4, Mk5, and Q models running firmware released after March 17, 2021, were vulnerable. A single attack drained approximately $38 million from 500 wallets within 15 to 25 minutes.

The exploit has raised concerns in the Bitcoin community, but fortunately, it did not affect the core network of the cryptocurrency.