Coldcard Exploit Triggers $90M BTC Heist, Undermines Self-Custody Narrative

A critical vulnerability in Coldcard hardware wallets led to the theft of approximately 1,367 BTC worth about $88.6 million from thousands of addresses.

The exploit targeted a flawed random number generator in seed creation and prompted a 'flight to safety,' with small holders moving funds to centralised exchanges.

Galaxy Research reported transfers under 1 BTC hit 39,600 BTC in a single day, nearing post-FTX bankruptcy levels.

Crypto analysts said this is bearish for Bitcoin's self-custody narrative in the short term, as it undermines trust in a key hardware wallet provider and may push users toward custodial solutions.