Coldcard Hack May Not Be Over Yet: Slim Recovery Odds for Stolen Bitcoin
A major Bitcoin hack may still be unfolding as on-chain analyst Willy Woo warns that the chances of stolen Coldcard Bitcoin being recovered are slim.
The exploit, which targeted users who kept their crypto in self-custody rather than on exchanges, has shaken confidence in the security of hardware wallets. According to Woo, the recovery odds for the stolen funds stand at only 20% to 40%, and it's likely to take multiple years for any recovery.
Galaxy Digital's Alex Thorn pointed out a potential fourth wave of coordinated attacks, with hundreds of BTC transferred from hundreds of victim wallets in a few hours. The total damage from the exploit now exceeds 1,367 BTC, worth roughly $86.6 million, drained from thousands of wallets since July 30.
Coldcard parent Coinkite, which employs only about five people, has come under scrutiny, with Bloomberg analyst Eric Balchunas calling it a 'red flag' for storing life savings.