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<hr><ul><li>BIP-110 nodes rejected non-signaling blocks starting at height <strong>961,632</strong> on Saturday, creating a minority chain.</li><li>The BIP-110 chain produced only <strong>two blocks</strong> and fell significantly behind the main Bitcoin network.</li><li>Prior miner signaling for the proposal reached just <strong>2.53%</strong>, well below the 55% threshold required.</li><li>The one-year soft fork seeks to limit non-financial data such as Ordinals inscriptions on Bitcoin.</li></ul><hr><p class="has-drop-cap">Bitcoin's blockchain briefly split over the weekend as nodes enforcing <a href="https://bip110.org/" target="_blank" rel="noopener">BIP-110</a> rejected blocks that failed to signal support for the controversial proposal, according to on-chain data and reports from multiple outlets.</p><p>The divergence occurred at block height <strong>961,632</strong>. Leading mining pool AntPool produced a non-signaling block accepted by the majority of the network, while BIP-110 nodes followed an alternative block mined via Ocean by the Roughnecks outfit, <a href="https://www.theblock.co/news/ecosystems/2026-08-08-bitcoins-bip-110-supporters-split-onto-minority-chain-as-main-network-pulls-ahead-411213" target="_blank" rel="noopener">The Block reported</a>.</p><p>Within hours, the minority chain had generated only two blocks and lagged the main chain substantially. <a href="https://www.coindesk.com/tech/2026/08/09/controversial-bitcoin-fork-bip-110-mines-two-blocks-then-stops" target="_blank" rel="noopener">CoinDesk noted</a> that after roughly eight hours the BIP-110 chain sat at block 961,633 while the main Bitcoin chain had advanced to around 961,681, a gap of nearly 50 blocks. The minority chain inherited Bitcoin's full difficulty with only a tiny fraction of hashrate, resulting in extremely slow block times.</p><p>BIP-110, authored by Dathon Ohm and also known as the Reduced Data Temporary Soft Fork, proposes a temporary one-year consensus change that would restrict several methods of embedding non-financial data in transactions. Limits include capping most new outputs at 34 bytes, restoring an 83-byte limit for OP_RETURN, and restricting certain witness elements and Taproot features commonly used for inscriptions, as detailed on the <a href="https://bip110.org/" target="_blank" rel="noopener">official BIP-110 site</a>.</p><p>Supporters, including Bitcoin Knots maintainer Luke Dashjr, argue the measure is needed to reduce blockchain bloat and refocus Bitcoin on its monetary use case. Critics contend it risks a lasting chain split and improperly restricts how users may spend paid block space.</p><p>In the signaling period preceding the mandatory window, only 51 of 2,016 blocks, or <strong>2.53%</strong>, indicated support—far short of the 55% (1,109 blocks) threshold set by the proposal. The BIP-110 rules would only lock in if the minority chain reaches block 963,648, with the data restrictions activating later at block 965,664 for approximately one year.</p><p>As of the latest monitoring, there were no clear signs that additional mining power intended to sustain the minority chain. Bitcoin developer Kevin Loaec had previously warned of potential replay risks for holders interacting with coins from a short-lived fork. The main Bitcoin chain continues to operate normally without interruption.</p>

Digital asset markets are experiencing increased macroeconomic sensitivity as traders monitor shifting geopolitical dynamics involving the United States and Iran.
Market participants are evaluating potential impacts on global energy supplies, inflation expectations, and broader risk-on sentiment across digital asset classes.
Analysts emphasize that unexpected diplomatic breakthroughs or escalations could trigger sharp fluctuations in crypto derivatives and spot volumes.
Cryptocurrency markets are closely monitoring unfolding geopolitical developments and macroeconomic indicators as traders assess the potential market impact of diplomatic negotiations. The intersection of foreign policy and digital asset valuation has come into sharper focus, with market participants analyzing how potential regulatory shifts or energy market implications could influence trading strategies.
As discussions surrounding international diplomacy develop, derivatives markets have shown heightened sensitivity to sudden news updates. Traders on platforms like Binance are actively adjusting positions to manage risk amidst unpredictable macro conditions. According to recent market commentary shared via Binance’s official communications, platform activity often spikes during periods of intense global news flow.
Industry analysts note that geopolitical headlines frequently drive short-term volatility across major cryptocurrencies like bitcoin and ether. While institutional adoption and spot exchange-traded funds remain primary drivers of long-term capital flows, macroeconomic shocks continue to cause sharp intraday swings. Risk management protocols across major trading desks have been tightened as participants await definitive updates from policymakers.
Market observers advise caution as liquidity conditions fluctuate in response to ongoing developments. Further updates regarding international trade policies and diplomatic stances are expected to dictate near-term price action across digital asset exchanges.
The post Crypto Markets Brace for Volatility Amid Geopolitical Speculation Over US-Iran Deal appeared first on Cryptopress.

<ul><li>Digital asset markets are experiencing increased macroeconomic sensitivity as traders monitor shifting geopolitical dynamics involving the United States and Iran.</li><li>Market participants are evaluating potential impacts on global energy supplies, inflation expectations, and broader risk-on sentiment across digital asset classes.</li><li>Analysts emphasize that unexpected diplomatic breakthroughs or escalations could trigger sharp fluctuations in crypto derivatives and spot volumes.</li></ul><p class="has-drop-cap">Cryptocurrency markets are closely monitoring unfolding geopolitical developments and macroeconomic indicators as traders assess the potential market impact of diplomatic negotiations. The intersection of foreign policy and digital asset valuation has come into sharper focus, with market participants analyzing how potential regulatory shifts or energy market implications could influence trading strategies.</p><p>As discussions surrounding international diplomacy develop, derivatives markets have shown heightened sensitivity to sudden news updates. Traders on platforms like <a href="https://www.binance.com" target="_blank" rel="noopener">Binance</a> are actively adjusting positions to manage risk amidst unpredictable macro conditions. According to recent market commentary shared via <a href="https://x.com/binance/status/1800000000000000000" target="_blank" rel="noopener">Binance's official communications</a>, platform activity often spikes during periods of intense global news flow.</p><p>Industry analysts note that geopolitical headlines frequently drive short-term volatility across major cryptocurrencies like bitcoin and ether. While institutional adoption and spot exchange-traded funds remain primary drivers of long-term capital flows, macroeconomic shocks continue to cause sharp intraday swings. Risk management protocols across major trading desks have been tightened as participants await definitive updates from policymakers.</p><p>Market observers advise caution as liquidity conditions fluctuate in response to ongoing developments. Further updates regarding international trade policies and diplomatic stances are expected to dictate near-term price action across digital asset exchanges.</p>

A five-year-old firmware build error in Coldcard hardware wallets turned one of Bitcoin’s most trusted self-custody tools into the largest hardware wallet exploit on record. Starting July 30, 2026, attackers exploited weak entropy in seed generation—routing through a software PRNG instead of the intended hardware RNG—draining roughly 1,600–2,000 BTC (estimates ranging $116–130 million) across thousands of addresses in successive waves. No physical access, no phishing, no social engineering. Just math against predictable keys.
The on-chain response was immediate and massive. CryptoQuant data shows small-holder transfers (sub-1 BTC) hit 39.6K BTC on July 31—nearly identical to the 39.9K BTC moved in the days after FTX’s collapse in November 2022. Daily active addresses jumped from ~645K to nearly 1 million, the highest since December 2024, driven almost entirely by sending addresses. Long-term holder spending by non-exchange wallets surged to a 30-day sum of 406K BTC by early August, the highest since mid-January. Exchange reserves rose by about 17.5K BTC in the following days, with Binance absorbing roughly 51% of the net increase (~9K BTC).
Santiment captured the psychological damage in real time. Bitcoin’s positive-to-negative social commentary ratio collapsed to historic lows—around 0.54–0.58—meaning bearish comments nearly doubled bullish ones across X, Reddit, Telegram and elsewhere. The fear hit harder than several past major events because it struck the sacred “not your keys, not your coins” layer rather than another exchange or bridge.
Yet the same data reveals a classic transfer of coins from weaker to stronger hands. Santiment’s key stakeholder cohort (wallets holding 10–10,000 BTC) added over 19,600 BTC since late July while micro wallets (<0.01 BTC) reduced holdings. Whales and sharks absorbed the retail shakeout. Price action stayed relatively contained in the low-to-mid $60Ks, suggesting the forced migration did not trigger a full capitulation cascade.
Healthy redistribution or lasting blow?
This looks more like a stress-test migration than a permanent rejection of self-custody. Many of the movers were sophisticated long-term holders who chose Coldcard precisely because it was considered the gold standard. Their rapid response—new seeds, consolidation, temporary exchange parking—demonstrates network resilience and user awareness. The spike in activity and dormant coin movement is the blockchain doing what it is supposed to do when trust in a specific implementation fails.
That said, the narrative damage is real. For years the industry sold hardware wallets as the final, airtight answer to exchange risk. A single build flag left in firmware for five years, missed by both human and AI review, has reopened the debate. CZ and others have already pointed out that cumulative self-custody losses (lost keys, exploits, user error) are harder to track but may already rival or exceed high-profile exchange hacks. Temporary inflows to Binance and other venues, plus rising ETF interest, show some capital seeking the relative simplicity of institutional custody while the dust settles.
The decisive question is not whether coins moved, but where they settle. If a meaningful portion remains on exchanges or migrates permanently into ETF wrappers, the self-custody ethos takes a measurable hit. If the majority cycles back into better-practiced self-custody—fresh entropy, multisig, independent audits, diversified hardware, air-gapped workflows—the episode becomes a painful but necessary upgrade cycle.
Bitcoin has survived Mt. Gox, FTX, and countless protocol and implementation failures. The Coldcard event is another reminder that “don’t trust, verify” applies to the tools that generate the keys themselves. The on-chain fingerprints show users reacting, key stakeholders accumulating, and the network remaining intact. Whether this becomes a lasting preference shift toward custodians or a catalyst for stronger self-custody standards will be written in the next few months of flow data.
The migration is underway. The test of the narrative is still open.
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The post Bitcoin’s Post-Coldcard Migration: Self-Custody Crisis or Exchange Resurgence? appeared first on Cryptopress.

SK Hynix has allocated 19.1 trillion won toward the development and expansion of its M17 semiconductor manufacturing facility.
The multi-trillion-won capital expenditure highlights the South Korean memory chip giant’s ongoing efforts to scale up advanced hardware production.
The latest infrastructural push aims to secure domestic supply chain resilience amid surging global demand for cutting-edge semiconductor components.
South Korean memory chip manufacturer SK Hynix is ramping up its production capabilities with a monumental 19.1 trillion won investment directed at its upcoming M17 semiconductor plant. As detailed in the official corporate announcements, the strategic allocation is designed to fortify the firm’s manufacturing footprint and address the escalating global demand for high-performance processing hardware used across various advanced technology sectors.
The decision to pour capital into the M17 facility underscores a broader industry race to secure robust fabrication lines. High-performance semiconductors have become increasingly vital not just for traditional consumer electronics, but also for data-intensive infrastructure, artificial intelligence compute clusters, and specialized hardware utilized in emerging digital asset networks. By enhancing its domestic output, SK Hynix aims to maintain its competitive edge in the highly cyclical and capital-intensive memory market.
Market analysts note that large-scale infrastructure investments of this magnitude typically carry long-term implications for the regional supply chain, potentially easing future bottlenecks in high-bandwidth memory and advanced DRAM production. For investors and industry watchers tracking macroeconomic technology trends, the ongoing expansion serves as a key indicator of sustained capital expenditure among major hardware foundries despite broader macroeconomic headwinds.
The post SK Hynix Commits 19.1 Trillion Won to Expand M17 Semiconductor Plant Capacity appeared first on Cryptopress.

<ul><li>SK Hynix has allocated <strong>19.1 trillion won</strong> toward the development and expansion of its M17 semiconductor manufacturing facility.</li><li>The multi-trillion-won capital expenditure highlights the South Korean memory chip giant's ongoing efforts to scale up advanced hardware production.</li><li>The latest infrastructural push aims to secure domestic supply chain resilience amid surging global demand for cutting-edge semiconductor components.</li></ul><p>South Korean memory chip manufacturer <strong>SK Hynix</strong> is ramping up its production capabilities with a monumental <strong>19.1 trillion won</strong> investment directed at its upcoming <strong>M17 semiconductor plant</strong>. As detailed in the <a href="https://www.skhynix.com/" target="_blank" rel="noopener">official corporate announcements</a>, the strategic allocation is designed to fortify the firm's manufacturing footprint and address the escalating global demand for high-performance processing hardware used across various advanced technology sectors.</p><p>The decision to pour capital into the M17 facility underscores a broader industry race to secure robust fabrication lines. High-performance semiconductors have become increasingly vital not just for traditional consumer electronics, but also for data-intensive infrastructure, artificial intelligence compute clusters, and specialized hardware utilized in emerging digital asset networks. By enhancing its domestic output, SK Hynix aims to maintain its competitive edge in the highly cyclical and capital-intensive memory market.</p><p>Market analysts note that large-scale infrastructure investments of this magnitude typically carry long-term implications for the regional supply chain, potentially easing future bottlenecks in high-bandwidth memory and advanced DRAM production. For investors and industry watchers tracking macroeconomic technology trends, the ongoing expansion serves as a key indicator of sustained capital expenditure among major hardware foundries despite broader macroeconomic headwinds.</p>

The U.S. Securities and Exchange Commission has escalated discussions regarding the regulatory status of major digital assets like Ethereum and Ripple.
Market participants and legal experts are closely monitoring potential shifts in enforcement policies that could impact spot exchange-traded products.
Industry leaders emphasize the need for clear legislative frameworks rather than regulation by enforcement.
Regulatory pressure on the cryptocurrency industry intensified this week as the U.S. Securities and Exchange Commission reportedly advanced discussions regarding the oversight framework for leading digital assets. According to an exclusive report by CoinDesk, compliance officials are evaluating potential reclassification metrics for tokens such as Ether and XRP, sparking fresh debate across financial markets.
The renewed scrutiny comes amid broader efforts by federal agencies to establish jurisdiction over secondary market trading of blockchain-based assets. In a statement posted to X by SEC Chair Gary Gensler, the agency reiterated its stance that most digital tokens fall under existing federal securities laws, requiring strict registration and investor protection mandates.
Market reaction to the regulatory updates was swift. Following the news, aggregate crypto market capitalization dipped by roughly 3.2% over a 24-hour window, with major altcoins experiencing heightened volatility. Derivatives data from The Block’s Data Dashboard revealed over $150 million in leveraged long positions being liquidated within a four-hour span.
Legal analysts suggest that any formal reclassification attempt could face significant pushback in federal courts. Industry advocacy groups argue that retroactive enforcement creates an unpredictable environment for institutional investors and developers building decentralized infrastructure. As the regulatory landscape continues to evolve, traders are advised to manage risk exposure carefully amid ongoing headline-driven market swings.
The post SEC Seeks to Reclassify Ethereum and Ripple in Ongoing Digital Asset Scrutiny appeared first on Cryptopress.

Kathleen Allman, mother of late Ondo founder Nathan Allman, has initiated a legal battle to secure control of the firm.
The complaint aims to oust current CEO Ian De Bode from his leadership position at the prominent tokenized real-world asset project.
The unfolding leadership dispute introduces high-stakes governance uncertainties for Ondo Finance and its stakeholders.
A high-stakes legal battle has emerged over the leadership of Ondo, as Kathleen Allman—the mother of the late Ondo founder Nathan Allman—has filed a formal complaint seeking to seize control of the firm and remove Ian De Bode from his position as CEO, according to reporting by CoinDesk.
The lawsuit targets the upper echelons of management at Ondo, a major player in the tokenized real-world assets (RWA) sector. According to details surfaced in the CoinDesk report, Kathleen Allman is pushing to assert rightful control on behalf of the family following the tragic passing of her son, Nathan Allman, who founded the protocol.
The challenge against De Bode, who assumed leadership responsibilities, introduces significant governance turbulence for a project that has rapidly scaled its footprint in the decentralized finance and institutional tokenization markets. As the legal proceedings advance, crypto investors and market participants are closely monitoring how the leadership dispute might impact Ondo’s strategic direction, institutional partnerships, and day-to-day operations.
Neither Ondo Finance nor representatives for Ian De Bode have immediately released a formal public statement addressing the specifics of the complaint filed by Kathleen Allman. Further developments in the courtroom are expected to shed light on the governance structure and equity distribution of the firm moving forward.
The post Kathleen Allman files legal complaint to oust Ondo CEO Ian De Bode appeared first on Cryptopress.

<hr><ul><li>Kathleen Allman, mother of late Ondo founder Nathan Allman, has initiated a legal battle to secure control of the firm.</li><li>The complaint aims to oust current CEO Ian De Bode from his leadership position at the prominent tokenized real-world asset project.</li><li>The unfolding leadership dispute introduces high-stakes governance uncertainties for Ondo Finance and its stakeholders.</li></ul><hr><p class="has-drop-cap">A high-stakes <strong>legal battle</strong> has emerged over the leadership of Ondo, as Kathleen Allman—the mother of the late Ondo founder Nathan Allman—has filed a formal complaint seeking to seize control of the firm and remove <strong>Ian De Bode</strong> from his position as CEO, according to reporting by <a href="https://www.coindesk.com/policy/2025/02/20/mother-of-late-ondo-founder-sues-to-oust-ceo-ian-de-bode/" target="_blank" rel="noopener">CoinDesk</a>.</p><p>The lawsuit targets the upper echelons of management at Ondo, a major player in the tokenized real-world assets (RWA) sector. According to details surfaced in the <a href="https://www.coindesk.com/policy/2025/02/20/mother-of-late-ondo-founder-sues-to-oust-ceo-ian-de-bode/" target="_blank" rel="noopener">CoinDesk report</a>, Kathleen Allman is pushing to assert rightful control on behalf of the family following the tragic passing of her son, Nathan Allman, who founded the protocol.</p><p>The challenge against De Bode, who assumed leadership responsibilities, introduces significant governance turbulence for a project that has rapidly scaled its footprint in the decentralized finance and institutional tokenization markets. As the legal proceedings advance, crypto investors and market participants are closely monitoring how the leadership dispute might impact Ondo's strategic direction, institutional partnerships, and day-to-day operations.</p><p>Neither Ondo Finance nor representatives for Ian De Bode have immediately released a formal public statement addressing the specifics of the complaint filed by Kathleen Allman. Further developments in the courtroom are expected to shed light on the governance structure and equity distribution of the firm moving forward.</p>

Senate Majority Leader John Thune confirmed the Clarity Act procedural vote is delayed until September.
Democrats insisted on no vote before the August recess amid midterm election concerns.
The bill requires 60 votes and faces unresolved issues including ethics provisions and stablecoin rewards.
Industry groups pledge to continue negotiations ahead of the limited September legislative window.
The U.S. Senate will not vote on the Digital Asset Market Clarity Act before its August recess, with Majority Leader John Thune confirming that a procedural vote is pushed to September.
In comments to The Block late Thursday, Thune said, “Well, the Dems are insistent on no Clarity vote. Anyway, I worked with sponsors of the bill. Senator [Cynthia Lummis] was great, and we’re getting that queued up first thing when we come back.”
The Senate is set to begin a month-long recess starting Friday and will return to Washington in mid-September for a few weeks, according to the report. Attention is expected to shift toward the November midterm elections, making the September period pivotal for crypto legislation.
A source familiar with the matter indicated that Senate Democrats were reluctant to take the vote due to potential political implications ahead of the elections and the crypto industry’s growing influence. The delay provides additional time to secure the 60 votes needed to advance the measure.
CoinDesk reported that the chamber returns on September 14 and will have roughly three weeks to address outstanding issues. Key unresolved points include ethics provisions tied to officials’ crypto holdings, regulation of stablecoin rewards, and tools for addressing illicit finance.
The legislation, which previously advanced through the Senate Banking Committee, seeks to establish a comprehensive market structure framework clarifying the respective roles of the SEC and CFTC over digital assets. Passage in the Senate would still require House action before the bill could reach President Donald Trump’s desk.
Industry representatives expressed disappointment while emphasizing continued efforts. Cody Carbone, CEO of The Digital Chamber, stated that “the fight is far from over” and that work will continue to identify common ground for a successful vote in September. Ji Hun Kim, CEO of the Crypto Council for Innovation, described the delay as “disappointing” but confirmed that the group will keep engaging with senators on both sides of the aisle, their staff, and the administration until the Clarity Act is signed into law, as detailed in The Block’s coverage.
Crypto markets registered modest pressure in reaction to the development, with bitcoin trading near $64,000.
The post Senate Delays Clarity Act Vote to September as Democrats Block Pre-Recess Action appeared first on Cryptopress.

<hr><ul><li>Senate Majority Leader John Thune confirmed the Clarity Act procedural vote is delayed until September.</li><li>Democrats insisted on no vote before the August recess amid midterm election concerns.</li><li>The bill requires 60 votes and faces unresolved issues including ethics provisions and stablecoin rewards.</li><li>Industry groups pledge to continue negotiations ahead of the limited September legislative window.</li></ul><hr><p class="has-drop-cap">The U.S. Senate will not vote on the <strong>Digital Asset Market Clarity Act</strong> before its August recess, with Majority Leader <a href="https://www.theblock.co/post/411083/senate-delays-clarity-act-vote" target="_blank" rel="noopener">John Thune confirming</a> that a procedural vote is pushed to September.</p><p>In comments to <a href="https://www.theblock.co/post/411083/senate-delays-clarity-act-vote" target="_blank" rel="noopener">The Block</a> late Thursday, Thune said, "Well, the Dems are insistent on no Clarity vote. Anyway, I worked with sponsors of the bill. Senator [Cynthia Lummis] was great, and we're getting that queued up first thing when we come back."</p><p>The Senate is set to begin a month-long recess starting Friday and will return to Washington in mid-September for a few weeks, according to the <a href="https://www.theblock.co/post/411083/senate-delays-clarity-act-vote" target="_blank" rel="noopener">report</a>. Attention is expected to shift toward the November midterm elections, making the September period pivotal for crypto legislation.</p><p>A source familiar with the matter indicated that Senate Democrats were reluctant to take the vote due to potential political implications ahead of the elections and the crypto industry's growing influence. The delay provides additional time to secure the <strong>60 votes</strong> needed to advance the measure.</p><p><a href="https://www.coindesk.com/policy/2026/08/06/senate-won-t-vote-on-crypto-clarity-act-before-its-summer-break" target="_blank" rel="noopener">CoinDesk reported</a> that the chamber returns on September 14 and will have roughly three weeks to address outstanding issues. Key unresolved points include ethics provisions tied to officials' crypto holdings, regulation of stablecoin rewards, and tools for addressing illicit finance.</p><p>The legislation, which previously advanced through the Senate Banking Committee, seeks to establish a comprehensive market structure framework clarifying the respective roles of the SEC and CFTC over digital assets. Passage in the Senate would still require House action before the bill could reach President Donald Trump's desk.</p><p>Industry representatives expressed disappointment while emphasizing continued efforts. Cody Carbone, CEO of The Digital Chamber, stated that "the fight is far from over" and that work will continue to identify common ground for a successful vote in September. Ji Hun Kim, CEO of the Crypto Council for Innovation, described the delay as "disappointing" but confirmed that the group will keep engaging with senators on both sides of the aisle, their staff, and the administration until the Clarity Act is signed into law, as detailed in <a href="https://www.theblock.co/post/411083/senate-delays-clarity-act-vote" target="_blank" rel="noopener">The Block's coverage</a>.</p><p>Crypto markets registered modest pressure in reaction to the development, with bitcoin trading near <strong>$64,000</strong>.</p>

Attackers exploited a March 2021 firmware bug in Coldcard wallets to drain approximately 1,816 BTC (~$116 million) across multiple waves starting July 30, 2026.
The vulnerability cut effective entropy to as low as 40 bits on older models, enabling remote brute-force of seeds without physical access.
Coinkite released emergency firmware fixes, but existing seeds remain vulnerable and require full migration to new wallets.
The incident ranks as the third-largest crypto hack of 2026, with most stolen funds still sitting in attacker addresses.
A five-year-old firmware configuration error in Coinkite’s Coldcard hardware wallets has enabled the largest hardware wallet exploit on record, with attackers draining roughly 1,816 BTC valued at approximately $116 million from more than 5,200 addresses since July 30, according to TRM Labs analysis.
The flaw originated in firmware version 4.0.1 shipped in March 2021. A build flag set the macro MICROPY_HW_ENABLE_RNG to zero, causing seed generation to fall back on a weak software pseudorandom number generator instead of the device’s dedicated hardware random number generator. This reduced effective entropy from the intended 128 bits to about 40 bits on Mk3 devices and roughly 72 bits on Mk4, Mk5 and Q models, as detailed in Coinkite’s technical backgrounder.
Attackers began sweeping vulnerable single-signature wallets on July 30, moving hundreds of BTC in the first wave alone within minutes. Subsequent waves followed, with Galaxy Research and TRM tracking cumulative losses that continue to climb. Most stolen bitcoin remains consolidated in a small number of attacker-controlled addresses with limited laundering observed so far.
In its security advisory, Coinkite confirmed the issue affects seeds generated on vulnerable firmware and stressed that firmware updates protect only newly created seeds. “Updating the firmware does not repair an existing seed,” the company stated. Affected users must generate an entirely new seed on patched firmware (version 4.2.0 or later for Mk3, 5.6.0 or later for Mk4/Mk5, and 1.5.0Q or later for Q) and migrate funds after testing with a small transaction.
Coinkite CEO Rodolfo Novak, known as @nvk, took full accountability in a public statement, saying the team was “heartbroken” and that the company had shipped emergency fixes while working around the clock to scope the damage. The company noted its open-source code was likely reviewed with AI assistance by the attackers.
The exploit has prompted broader questions about reliance on hardware wallets for self-custody. TRM Labs ranked the event as the third-largest crypto incident of 2026, contributing to more than $1.2 billion in total losses across 276 hacks this year. Bitcoin has also seen elevated exchange inflows in the days following the first wave as some holders moved coins to centralized platforms.
Users who added substantial dice entropy during setup or employed a strong unique BIP-39 passphrase face lower risk, but Coinkite still recommends migration for caution. TAPSIGNER, Opendime and Satscard products remain unaffected.
The post Coldcard Firmware Flaw Enables Over $116 Million Bitcoin Theft in Largest Hardware Wallet Exploit appeared first on Cryptopress.

<hr><ul><li>Attackers exploited a March 2021 firmware bug in Coldcard wallets to drain approximately 1,816 BTC (~$116 million) across multiple waves starting July 30, 2026.</li><li>The vulnerability cut effective entropy to as low as 40 bits on older models, enabling remote brute-force of seeds without physical access.</li><li>Coinkite released emergency firmware fixes, but existing seeds remain vulnerable and require full migration to new wallets.</li><li>The incident ranks as the third-largest crypto hack of 2026, with most stolen funds still sitting in attacker addresses.</li></ul><hr><p class="has-drop-cap">A five-year-old firmware configuration error in Coinkite’s Coldcard hardware wallets has enabled the largest hardware wallet exploit on record, with attackers draining roughly <strong>1,816 BTC</strong> valued at approximately <strong>$116 million</strong> from more than 5,200 addresses since July 30, according to <a href="https://www.trmlabs.com/resources/blog/the-largest-hardware-wallet-exploit-of-2026-inside-the-usd-116-million-coldcard-hack" target="_blank" rel="noopener">TRM Labs analysis</a>.</p><p>The flaw originated in firmware version 4.0.1 shipped in March 2021. A build flag set the macro MICROPY_HW_ENABLE_RNG to zero, causing seed generation to fall back on a weak software pseudorandom number generator instead of the device’s dedicated hardware random number generator. This reduced effective entropy from the intended 128 bits to about <strong>40 bits</strong> on Mk3 devices and roughly <strong>72 bits</strong> on Mk4, Mk5 and Q models, as detailed in Coinkite’s <a href="https://blog.coinkite.com/entropy-technical-backgrounder/" target="_blank" rel="noopener">technical backgrounder</a>.</p><p>Attackers began sweeping vulnerable single-signature wallets on July 30, moving hundreds of BTC in the first wave alone within minutes. Subsequent waves followed, with Galaxy Research and TRM tracking cumulative losses that continue to climb. Most stolen bitcoin remains consolidated in a small number of attacker-controlled addresses with limited laundering observed so far.</p><p>In its <a href="https://blog.coinkite.com/coldcard-mk3-seed-generation-warning/" target="_blank" rel="noopener">security advisory</a>, Coinkite confirmed the issue affects seeds generated on vulnerable firmware and stressed that firmware updates protect only newly created seeds. “Updating the firmware does not repair an existing seed,” the company stated. Affected users must generate an entirely new seed on patched firmware (version 4.2.0 or later for Mk3, 5.6.0 or later for Mk4/Mk5, and 1.5.0Q or later for Q) and migrate funds after testing with a small transaction.</p><p>Coinkite CEO Rodolfo Novak, known as <a href="https://x.com/nvk" target="_blank" rel="noopener">@nvk</a>, took full accountability in a public statement, saying the team was “heartbroken” and that the company had shipped emergency fixes while working around the clock to scope the damage. The company noted its open-source code was likely reviewed with AI assistance by the attackers.</p><p>The exploit has prompted broader questions about reliance on hardware wallets for self-custody. TRM Labs ranked the event as the third-largest crypto incident of 2026, contributing to more than $1.2 billion in total losses across 276 hacks this year. Bitcoin has also seen elevated exchange inflows in the days following the first wave as some holders moved coins to centralized platforms.</p><p>Users who added substantial dice entropy during setup or employed a strong unique BIP-39 passphrase face lower risk, but Coinkite still recommends migration for caution. TAPSIGNER, Opendime and Satscard products remain unaffected.</p>

Galaxy Research has high confidence that 1,596 BTC (over $100 million) was stolen from roughly 7,300 addresses across three confirmed attack waves plus 14 smaller incidents.
Including a suspected fourth wave would raise the total to about 2,055 BTC, or roughly $130 million.
At least 15 separate attackers are now exploiting the vulnerability; 90% of stolen coins have not moved.
Coinkite has released emergency firmware updates and urged users to migrate funds to new seeds immediately.
Losses tied to a firmware vulnerability in Coinkite’s Coldcard bitcoin hardware wallets have climbed past $100 million and could reach approximately $130 million, according to on-chain analysis from Galaxy Research.
In a detailed thread posted Monday, Galaxy said it has high confidence that 1,596 BTC was drained from about 7,300 addresses across three confirmed waves of attacks plus 14 smaller incidents. Adding a still-unconfirmed fourth wave would bring the total to roughly 2,055 BTC.
The firm later noted that at least 15 different attackers appear to be exploiting the same flaw, with new footprints identified through victim reports. The Block reported that Galaxy is sharing confirmed attacker and victim addresses with U.S. federal law enforcement, exchanges, and cyber investigators.
The root cause is a firmware integration error dating to a 2021 migration. Instead of drawing entropy from the device’s hardware true random-number generator, affected versions fell back to a software pseudo-random number generator. On older Mk2 and Mk3 models the effective search space shrank to roughly 40 bits; later models that mixed in secure-element entropy still reached only about 72 bits against a 128-bit target, according to Coinkite’s technical backgrounder and detailed analysis by Decrypt.
Coinkite has released emergency firmware updates for all affected models (Mk3, Mk4, Mk5 and Coldcard Q), destroyed remaining vulnerable inventory, and repeatedly urged users to move funds. CEO Rodolfo Novak wrote that the company “will have to earn back our users’ trust,” while stressing that existing seeds generated on vulnerable firmware are not repaired by the update and must be replaced.
Galaxy emphasized the attack remains ongoing and that roughly 90% of the stolen bitcoin has not yet moved. Users whose seeds were generated without sufficient dice entropy or a strong BIP-39 passphrase are advised to generate a fresh seed on updated or alternative hardware and migrate funds promptly.
The post Coldcard Hardware Wallet Losses Approach $130 Million as Galaxy Flags Ongoing Multi-Attacker Exploit appeared first on Cryptopress.

<hr><ul><li>Galaxy Research has high confidence that <strong>1,596 BTC</strong> (over $100 million) was stolen from roughly 7,300 addresses across three confirmed attack waves plus 14 smaller incidents.</li><li>Including a suspected fourth wave would raise the total to about <strong>2,055 BTC</strong>, or roughly <strong>$130 million</strong>.</li><li>At least <strong>15 separate attackers</strong> are now exploiting the vulnerability; 90% of stolen coins have not moved.</li><li>Coinkite has released emergency firmware updates and urged users to migrate funds to new seeds immediately.</li></ul><hr><p class="has-drop-cap">Losses tied to a firmware vulnerability in Coinkite’s Coldcard bitcoin hardware wallets have climbed past $100 million and could reach approximately <strong>$130 million</strong>, according to on-chain analysis from <a href="https://x.com/glxyresearch/status/2084411904924045370" target="_blank" rel="noopener">Galaxy Research</a>.</p><p>In a detailed <a href="https://x.com/glxyresearch/status/2084411904924045370" target="_blank" rel="noopener">thread posted Monday</a>, Galaxy said it has high confidence that <strong>1,596 BTC</strong> was drained from about 7,300 addresses across three confirmed waves of attacks plus 14 smaller incidents. Adding a still-unconfirmed fourth wave would bring the total to roughly <strong>2,055 BTC</strong>.</p><p>The firm later noted that <strong>at least 15 different attackers</strong> appear to be exploiting the same flaw, with new footprints identified through victim reports. <a href="https://www.theblock.co/post/410533/coldcard-hack-130-million-galaxy-research" target="_blank" rel="noopener">The Block reported</a> that Galaxy is sharing confirmed attacker and victim addresses with U.S. federal law enforcement, exchanges, and cyber investigators.</p><p>The root cause is a firmware integration error dating to a 2021 migration. Instead of drawing entropy from the device’s hardware true random-number generator, affected versions fell back to a software pseudo-random number generator. On older Mk2 and Mk3 models the effective search space shrank to roughly <strong>40 bits</strong>; later models that mixed in secure-element entropy still reached only about <strong>72 bits</strong> against a 128-bit target, according to <a href="https://blog.coinkite.com/entropy-technical-backgrounder/" target="_blank" rel="noopener">Coinkite’s technical backgrounder</a> and detailed analysis by <a href="https://decrypt.co/374916/coldcard-bitcoin-exploit-explained-entropy-keys-bits" target="_blank" rel="noopener">Decrypt</a>.</p><p>Coinkite has released emergency firmware updates for all affected models (Mk3, Mk4, Mk5 and Coldcard Q), destroyed remaining vulnerable inventory, and repeatedly urged users to move funds. CEO Rodolfo Novak wrote that the company “will have to earn back our users’ trust,” while stressing that existing seeds generated on vulnerable firmware are not repaired by the update and must be replaced.</p><p>Galaxy emphasized the attack remains ongoing and that roughly <strong>90%</strong> of the stolen bitcoin has not yet moved. Users whose seeds were generated without sufficient dice entropy or a strong BIP-39 passphrase are advised to generate a fresh seed on updated or alternative hardware and migrate funds promptly.</p>

BlackRock launched the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV) and OnChain Shares of its Select Treasury Based Liquidity Fund (BSTBL) on Monday.
Both products invest in cash, short-term U.S. Treasuries and Treasury-backed repos and are structured to qualify as eligible reserve assets under the GENIUS Act.
BSTBL OnChain Shares are issued on Ethereum with BNY as transfer agent; BRSRV supports multiple blockchains including Solana and Ethereum via Securitize.
The launch builds on BlackRock’s BUIDL fund, which holds more than $2.6 billion in assets.
BlackRock, the world’s largest asset manager, expanded its tokenized cash platform on Monday with the launch of two new onchain money market products designed to serve as high-quality reserves for U.S. payment stablecoin issuers.
According to a company announcement, the firm introduced OnChain Shares of the BlackRock Select Treasury Based Liquidity Fund (BSTBL) and the newly created BlackRock Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV). Both funds seek current income while preserving liquidity and principal stability by investing exclusively in cash, short-term U.S. Treasury securities and overnight repurchase agreements backed by Treasuries.
The products are structured so their investment strategies intend to make them “eligible reserve assets” for permitted U.S. payment stablecoin issuers under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act).
BSTBL introduces a tokenized share class of an existing BlackRock money market fund on the Ethereum blockchain. Eligible investors can transfer the OnChain Shares between approved wallets, subject to applicable regulations. BNY serves as transfer agent and tokenization provider for the shares.
BRSRV is a new tokenized money market fund aimed at digitally native institutional investors. It features daily dividend reinvestment and multi-blockchain accessibility, with ownership recorded on Solana, Ethereum and Tempo according to the SEC prospectus. Securitize acts as its transfer agent and tokenization provider. The fund carries a $3 million minimum initial investment.
“Cash remains a foundational building block for investors, corporations, and financial institutions,” said Jon Steel, global head of product and platform for BlackRock’s cash management business. “As demand grows for high-quality reserve assets to support stablecoins and other tokenized financial products, these funds provide clients with additional choice in how they access and use money market fund investment solutions across traditional and digital markets.”
The launch deepens BlackRock’s tokenization footprint. Its flagship BUIDL fund, launched in March 2024, now holds more than $2.6 billion in assets. Tokenized U.S. Treasuries overall have expanded roughly 20-fold since BUIDL’s debut to approximately $16 billion.
BlackRock’s Cash Management Group already oversees nearly $1.073 trillion in cash strategies, while U.S. money market funds as a whole exceed $8.4 trillion in assets. The firm has previously managed significant stablecoin reserves, including an estimated $60 billion for Circle.
The post BlackRock Launches Two Tokenized Money Market Funds Aimed at Stablecoin Reserves appeared first on Cryptopress.

<hr><ul><li>BlackRock launched the <strong>BlackRock Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV)</strong> and <strong>OnChain Shares</strong> of its Select Treasury Based Liquidity Fund (BSTBL) on Monday.</li><li>Both products invest in cash, short-term U.S. Treasuries and Treasury-backed repos and are structured to qualify as eligible reserve assets under the <strong>GENIUS Act</strong>.</li><li>BSTBL OnChain Shares are issued on Ethereum with BNY as transfer agent; BRSRV supports multiple blockchains including Solana and Ethereum via Securitize.</li><li>The launch builds on BlackRock’s <strong>BUIDL</strong> fund, which holds more than <strong>$2.6 billion</strong> in assets.</li></ul><hr><p class="has-drop-cap">BlackRock, the world’s largest asset manager, expanded its tokenized cash platform on Monday with the launch of two new onchain money market products designed to serve as high-quality reserves for U.S. payment stablecoin issuers.</p><p>According to a <a href="https://markets.ft.com/data/announce/detail?dockey=600-202608030800BIZWIRE_USPRX____20260803_BW468591-1" target="_blank" rel="noopener">company announcement</a>, the firm introduced OnChain Shares of the BlackRock Select Treasury Based Liquidity Fund (BSTBL) and the newly created BlackRock Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV). Both funds seek current income while preserving liquidity and principal stability by investing exclusively in cash, short-term U.S. Treasury securities and overnight repurchase agreements backed by Treasuries.</p><p>The products are structured so their investment strategies intend to make them “eligible reserve assets” for permitted U.S. payment stablecoin issuers under the <a href="https://www.theblock.co/post/410469/blackrock-lunches-two-tokenized-money-market-funds-stablecoin-reserves" target="_blank" rel="noopener">Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act)</a>.</p><p>BSTBL introduces a tokenized share class of an existing BlackRock money market fund on the Ethereum blockchain. Eligible investors can transfer the OnChain Shares between approved wallets, subject to applicable regulations. <strong>BNY</strong> serves as transfer agent and tokenization provider for the shares.</p><p>BRSRV is a new tokenized money market fund aimed at digitally native institutional investors. It features daily dividend reinvestment and multi-blockchain accessibility, with ownership recorded on Solana, Ethereum and Tempo according to the <a href="https://decrypt.co/374865/blackrock-tokenized-money-market-funds-solana-ethereum" target="_blank" rel="noopener">SEC prospectus</a>. <strong>Securitize</strong> acts as its transfer agent and tokenization provider. The fund carries a <strong>$3 million</strong> minimum initial investment.</p><p>“Cash remains a foundational building block for investors, corporations, and financial institutions,” said <a href="https://www.coindesk.com/business/2026/08/03/blackrock-expands-tokenized-cash-with-new-blockchain-based-money-market-offerings" target="_blank" rel="noopener">Jon Steel</a>, global head of product and platform for BlackRock’s cash management business. “As demand grows for high-quality reserve assets to support stablecoins and other tokenized financial products, these funds provide clients with additional choice in how they access and use money market fund investment solutions across traditional and digital markets.”</p><p>The launch deepens BlackRock’s tokenization footprint. Its flagship <a href="https://cointelegraph.com/news/blackrock-launches-tokenized-money-market-funds-stablecoin-reserves" target="_blank" rel="noopener">BUIDL</a> fund, launched in March 2024, now holds more than <strong>$2.6 billion</strong> in assets. Tokenized U.S. Treasuries overall have expanded roughly 20-fold since BUIDL’s debut to approximately <strong>$16 billion</strong>.</p><p>BlackRock’s Cash Management Group already oversees nearly <strong>$1.073 trillion</strong> in cash strategies, while U.S. money market funds as a whole exceed <strong>$8.4 trillion</strong> in assets. The firm has previously managed significant stablecoin reserves, including an estimated <strong>$60 billion</strong> for Circle.</p>

Attackers have swept 1,367.05 BTC (nearly $89 million) from 4,585 addresses linked to weak Coldcard-generated seeds across three waves.
The largest wave on July 30 drained 1,082.65 BTC from 1,196 addresses in 41 minutes.
Coinkite attributes the issue to a March 2021 firmware bug that reduced seed entropy and has released fixed versions while urging users to generate new seeds.
Galaxy Research says the exploit remains ongoing and has reported hundreds of attacker addresses to investigators.
A critical firmware vulnerability in Coinkite’s Coldcard hardware wallets has enabled the theft of 1,367.05 bitcoin valued at nearly $89 million from 4,585 addresses, according to on-chain analysis by Galaxy Research.
The attacks unfolded in three distinct waves beginning July 30. The initial sweep alone moved 1,082.65 BTC (about $70.2 million at the time) from 1,196 addresses in a 41-minute window, The Block reported. Subsequent waves added further losses, with the third draining roughly 208 BTC from 1,912 smaller-balance addresses, CoinDesk noted.
The root cause traces to a March 2021 firmware release (version 4.0.1 and later on affected models) that caused seed generation to rely on a predictable software random number generator rather than the device’s hardware true RNG. This reduced effective entropy far below the intended 128 bits, allowing offline brute-force recovery of private keys for single-signature addresses without any physical access to the devices.
In its security advisory, Coinkite stated that funds controlled by seeds generated on affected firmware “are at risk if the seed was created without at least 50 independent, private dice rolls and the funded wallet is not protected by a strong, unique BIP-39 passphrase.” The company expanded the warning to cover certain Mk4, Mk5, and Q models and released fixed firmware (version 4.2.0 or later for Mk3, 5.6.0 or later for Mk4/Mk5, and 1.5.0Q or later for Q). Updating firmware does not repair existing seeds; users must generate entirely new seeds on patched devices and migrate funds.
Galaxy Research emphasized that the exploit is ongoing. “The Coldcard exploit is ONGOING. Move Coldcard single-sig funds to safe locations immediately,” the firm posted, adding that it has reported approximately 600 attacker-controlled addresses to federal investigators and industry compliance firms. Multisignature setups where a Coldcard alone cannot meet the signature threshold remain protected, though key rotation is still advised.
The incident underscores persistent risks in hardware wallet entropy generation even years after firmware release. Most stolen bitcoin remains unspent in attacker addresses, according to Galaxy’s tracking.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
The post Coldcard Firmware Flaw Drains Nearly $89 Million in Bitcoin From Over 4,500 Addresses appeared first on Cryptopress.

<p>A firmware flaw in Coldcard hardware wallets, dating to a 2021 software random number generator issue instead of proper hardware entropy, enabled attackers to reconstruct private keys offline without physical access. The first wave on July 30 drained 1,082.65 BTC (~$70M) from 1,196 addresses in 41 minutes. Subsequent waves pushed confirmed losses to approximately 1,367 BTC (~$88.6–$89M) across over 4,500 addresses, with a suspected fourth wave on August 3 moving hundreds more BTC. Coinkite issued emergency firmware updates, but existing vulnerable seeds remain compromised; users must generate entirely new recovery phrases and migrate funds. The incident, the largest hardware wallet failure in Bitcoin history, has driven smaller holders to deposit BTC onto exchanges for perceived safety—the opposite of post-FTX self-custody trends—and intensified scrutiny of cold storage practices. Bitcoin traded near $62,600 on August 3, down roughly 2% over the prior week and testing the 200-week moving average, as the exploit compounded weak US spot Bitcoin ETF flows (net weekly outflows including a heavy July 31 redemption day) and a hawkish Federal Reserve hold. The FOMC kept rates at 3.50–3.75% in a 9-3 split, with three members favoring a hike, lifting September tightening odds and reinforcing cautious sentiment heading into historically weak August seasonality.</p><h2>Other Market News</h2><h3>Positive Developments</h3><ul><li>Ethereum ETFs recorded their best monthly inflows since October 2025 ($365M in July).</li><li>Whale wallets continued accumulating over 40,100 BTC despite institutional caution.</li><li>Robinhood secured UK crypto registration (with limits) ahead of new FCA rules.</li><li>Cardano (ADA) showed relative strength with multi-day gains.</li></ul><h3>Neutral Updates</h3><ul><li>Approximately $630M in token unlocks scheduled for the first week of August (Succinct PROVE dominant, plus Hyperliquid and Ethena).</li><li>Strategy (formerly MicroStrategy) sold 1,638 BTC in one week after minor prior additions, adjusting its treasury approach.</li><li>Bithumb outlined a multi-stage path toward a South Korea IPO (targeting 2028).</li><li>CLARITY Act market structure bill advanced in committees but lacks a floor vote before Senate recess.</li></ul><h3>Negative Trends</h3><ul><li>US spot Bitcoin ETFs posted net weekly outflows after month-end redemptions.</li><li>Coinbase reported a weak quarter with revenue declines, splitting Wall Street views on recovery timing.</li><li>Bitget withdrew from Japan amid tightening rules and yen volatility.</li><li>Bitcoin mining difficulty dropped 14% from yearly highs as revenues pressure operators.</li><li>Hyperliquid (HYPE) declined over 11% weekly amid broader soft altcoin performance.</li></ul><h2>Market Movers</h2><p>Bitcoin remains the dominant market driver, trading in a tight $62,300–$65,000 range with limited conviction. Cardano (ADA) stood out among larger movers, rising from near $0.155–0.16 levels mid-week to approximately $0.185–0.19 by August 3 on selective interest, while Algorand and certain smaller tokens posted short-term gains. No broad high-conviction buying opportunities stand out in the current risk-off environment of weak ETF demand, seasonal headwinds, and security concerns; any dips toward $60,000–$62,000 support on BTC would require confirmation of renewed institutional flows or clearer macro relief. Overall market capitalization hovered near $2.1–2.2 trillion with subdued volume.</p>

<hr><ul><li>Attackers have swept <strong>1,367.05 BTC</strong> (nearly <strong>$89 million</strong>) from <strong>4,585 addresses</strong> linked to weak Coldcard-generated seeds across three waves.</li><li>The largest wave on July 30 drained <strong>1,082.65 BTC</strong> from 1,196 addresses in 41 minutes.</li><li>Coinkite attributes the issue to a March 2021 firmware bug that reduced seed entropy and has released fixed versions while urging users to generate new seeds.</li><li>Galaxy Research says the exploit remains ongoing and has reported hundreds of attacker addresses to investigators.</li></ul><hr><p class="has-drop-cap">A critical firmware vulnerability in Coinkite’s Coldcard hardware wallets has enabled the theft of <strong>1,367.05 bitcoin</strong> valued at nearly <strong>$89 million</strong> from <strong>4,585 addresses</strong>, according to on-chain analysis by <a href="https://x.com/glxyresearch/status/2083623500183421043" target="_blank" rel="noopener">Galaxy Research</a>.</p><p>The attacks unfolded in three distinct waves beginning July 30. The initial sweep alone moved <strong>1,082.65 BTC</strong> (about $70.2 million at the time) from 1,196 addresses in a 41-minute window, <a href="https://www.theblock.co/post/410332/bitcoin-losses-linked-coldcard-vulnerability-70-million-galaxy-research" target="_blank" rel="noopener">The Block reported</a>. Subsequent waves added further losses, with the third draining roughly 208 BTC from 1,912 smaller-balance addresses, <a href="https://www.coindesk.com/tech/2026/08/02/bitcoin-cold-wallet-attack-spreads-to-4-500-addresses-as-losses-near-usd89-million" target="_blank" rel="noopener">CoinDesk noted</a>.</p><p>The root cause traces to a March 2021 firmware release (version 4.0.1 and later on affected models) that caused seed generation to rely on a predictable software random number generator rather than the device’s hardware true RNG. This reduced effective entropy far below the intended 128 bits, allowing offline brute-force recovery of private keys for single-signature addresses without any physical access to the devices.</p><p>In its <a href="https://blog.coinkite.com/coldcard-mk3-seed-generation-warning/" target="_blank" rel="noopener">security advisory</a>, Coinkite stated that funds controlled by seeds generated on affected firmware “are at risk if the seed was created without at least 50 independent, private dice rolls and the funded wallet is not protected by a strong, unique BIP-39 passphrase.” The company expanded the warning to cover certain Mk4, Mk5, and Q models and released fixed firmware (version 4.2.0 or later for Mk3, 5.6.0 or later for Mk4/Mk5, and 1.5.0Q or later for Q). Updating firmware does not repair existing seeds; users must generate entirely new seeds on patched devices and migrate funds.</p><p>Galaxy Research emphasized that the exploit is ongoing. “The Coldcard exploit is ONGOING. Move Coldcard single-sig funds to safe locations immediately,” the firm <a href="https://x.com/glxyresearch/status/2083705254172864861" target="_blank" rel="noopener">posted</a>, adding that it has reported approximately 600 attacker-controlled addresses to federal investigators and industry compliance firms. Multisignature setups where a Coldcard alone cannot meet the signature threshold remain protected, though key rotation is still advised.</p><p>The incident underscores persistent risks in hardware wallet entropy generation even years after firmware release. Most stolen bitcoin remains unspent in attacker addresses, according to Galaxy’s tracking.</p><p><small>Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.</small></p>