Galaxy Research: 1,196 Coldcard Addresses Compromised... 1,082 Bitcoins Leaked

A seed-generation flaw in the Coldcard hardware wallet led to about 1,082.65 BTC, or roughly $70 million, being drained from around 1,196 addresses.

Galaxy Research said the outflow was tied to the Coldcard security issue.

Manufacturer Coinkite warned of a Mk3 seed problem and expanded the advisory to some Mk4, Mk5, and Q devices, then released an emergency firmware update.

The incident has sharply damaged trust in hardware-wallet security and user asset protection.