In a recent analysis, Galaxy Research, the research division of Galaxy Digital, has identified a significant loss associated with the Coldcard wallet incident, estimating the total at approximately $70.2 million. This figure stems from the loss of 1,082.65 Bitcoin across 1,196 addresses during a brief 41-minute window on July 30.
Incident Timeline and Analysis
The transactions in question occurred between 1:10 AM and 1:51 AM UTC, spanning blocks 960,183 to 960,191. Notably, this analysis was conducted about 30 hours prior to Coldcard’s release of its initial security advisory. Earlier assessments by Rob Hamilton, CEO and co-founder of AnchorWatch, had estimated a loss of 594.48 Bitcoin, valued at around $38 million, across 500 transactions within a narrower three-block window.
Identified Patterns and Security Implications
Galaxy Research noted that the transactions exhibited a distinct pattern, characterized by identical fees of 30 satoshis per virtual byte and the absence of change outputs. This on-chain pattern indicates identifiable initial attack activity; however, the firm cautioned that subsequent attacks on Coldcard-generated addresses may not replicate this identifiable fingerprint.
Response from Coinkite
In response to the incident, Rodolfo Novak, co-founder of Coinkite, acknowledged the company’s responsibility for the firmware bug. He confirmed that a hotfix has been released to eliminate the software fallback path. However, Novak warned that this update does not safeguard seeds generated on the compromised firmware, advising affected users to transfer their funds to a new seed.
Broader Market Context
This incident raises critical questions about the security of hardware wallets and the implications for user trust in self-custody solutions. As the crypto market continues to evolve, the importance of robust security measures becomes increasingly paramount.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
