Coinkite's Coldcard hardware wallet suffered a fourth suspected sweep of funds, pushing estimated losses toward $114 million. Security researchers tracking on-chain movements now believe the exploit affected far more users than initially reported, with each new transaction wave revealing additional compromised wallets.
The exact scope remains fluid. The $114 million figure aggregates Bitcoin transfers linked to vulnerable Coldcard devices, combining already-drained balances with funds that appeared exposed during subsequent sweeps. It's not a single confirmed theft but a running tally built from detected on-chain activity. When losses first surfaced publicly, the count sat at $88 million. The jump to $114 million reflects newly attributed transfers rather than fresh exploitation.
How the Exploit Unfolded
The incident centers on a vulnerability in Coldcard wallets that allowed attackers to drain funds in waves. Each sweep caught more affected devices, expanding the damage estimate. Observers believe the vulnerability may have been present for months, meaning some users lost coins without realizing it until security researchers connected the dots.
The figures should be treated as potential and partly projected rather than fully verified. Researchers continue monitoring blockchain activity for additional compromised wallets, so the total could shift higher if new sweeps surface. This creates uncertainty for affected users trying to understand their exposure.
The incident shows recurring risks in hardware wallet security. Even devices marketed as offline storage solutions can face exploitation if firmware or physical security mechanisms contain flaws. Users of Coldcard and similar devices have scrambled to verify their holdings and move funds to alternative wallets.
Bitcoin markets absorbed the news with muted reaction, reflecting broader sentiment that hardware wallet breaches rarely move the broader crypto ecosystem.
This material is informational only and does not constitute financial advice. Verify holdings independently if you own Coldcard or similar devices.
