Coldcard Firmware Vulnerability Linked to $70M+ Bitcoin Theft
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A critical Coldcard hardware wallet firmware vulnerability introduced in March 2021 enabled remote theft of user Bitcoin, with Galaxy Research estimating ~1,082.65 BTC (over $70M) drained from 1,196 addresses within 41 minutes. While a new firmware update patches the flaw, seed phrases previously generated on impacted devices remain compromised. The incident is a material crypto-infrastructure security shock that can pressure risk appetite and custody confidence near term.
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A security vulnerability in Coldcard hardware wallet firmware has been blamed for a remote attack that allowed hackers to steal users' bitcoin. The flaw was introduced in a firmware release issued in March 2021. Galaxy Research estimates that roughly 1,082.65 BTC (worth more than $70 million) was drained from 1,196 addresses in just 41 minutes.
Coldcard has released updated firmware that fixes the issue. The patch, however, does not protect seed phrases that were previously generated on affected devices.
The incident is categorized as a crypto infrastructure security event and has no direct connection to traditional financial assets.
