White-hat security researchers have successfully recovered 52.37 Bitcoin, valued at over $4.5 million, following a recent exploit involving Coldcard hardware wallets. These funds are now held in the Crypto Recovery Trust so that verified victims can reclaim them.
According to Galaxy Digital researcher Alex Thorn, the attacks resulted in a total loss of 1,789.28 BTC, which is worth approximately $154.1 million. The rescued assets account for roughly 2.8% of the total funds tied to the exploit.
Nick Bax of Ump Labs, who confirmed he helped safeguard approximately 50 BTC, noted that the stolen funds were on the verge of being taken by malicious actors before the intervention. This transfer provides a viable pathway for impacted Coldcard users to recover their assets. In an unrelated security incident, an MEV bot successfully halted an Ethereum wallet exploit, preventing an attacker from draining $7.8 million while KelpDAO froze the destination address for a 24-hour period.
The security breaches started on July 31, specifically targeting Bitcoin stored on Coinkite’s Coldcard hardware wallets. Coinkite subsequently identified the vulnerability as a firmware bug that impacted seed generation. Due to this flaw, certain devices were forced to rely on a software random generator, allowing attackers to leverage predictable seed data to deduce wallet credentials and access user funds.
In response to the vulnerability, Coldcard has strongly advised all users to either update their device firmware immediately or transfer their funds away from vulnerable hardware.
Frequently Asked Questions
How much Bitcoin was recovered by the white hats?
White-hat researchers rescued 52.37 BTC, which is valued at more than $4.5 million.
Where are the rescued funds currently stored?
The recovered Bitcoin is now held by the Crypto Recovery Trust, which plans to return the assets to verified victims.
What caused the Coldcard exploit?
Coinkite traced the security vulnerability to a firmware bug that affected seed generation, forcing some devices to use a software random generator with predictable seed data.
How much total Bitcoin was lost in the attacks?
Galaxy Digital tracked a total of 1,789.28 BTC—worth approximately $154.1 million—lost during the attacks.
What should Coldcard users do to protect themselves?
Coldcard has advised users to update their firmware or move their funds off vulnerable devices.