Bitcoin Worth $86 Million Stolen From Coldcard Crypto Wallets, Company Halts Shipments, Destroys Remaining Units

Alex Thorn, Head of Research at Galaxy Research, said late Sunday that hackers may be launching a fourth coordinated attack on the compromised cryptocurrency wallet Coldcard, which has already seen around 1,367 Bitcoin (CRYPTO: BTC) drained.

Hackers Target Cold Wallet

Thorn alerted on X that a fresh wave of attacks has pilfered 388.93 BTC, worth $24.53 million at prevailing prices, from 462 addresses in 218 transactions.

He urges users to move funds off the Coldcard wallet immediately, using high transaction fees to prioritize their rescue transaction ahead of the hacker’s.

THESE TXS ARE PENDING IN THE MEMPOOL WITH RBF OPT-IN AND APPEAR TO BE SIPHONS BY A COORDINATED “4TH WAVE” ATTACK ON COLDCARD USERS

IF YOUR ADDRESS IS IN THIS LIST YOU HAVE ONLY MINUTES TO ENGAGE IN A FEE RACE TO BEAT THE ATTACKER AND SECURE YOUR FUNDS https://t.co/nekSYMbSMj

— Alex Thorn (@intangiblecoins) August 3, 2026

A dashboard tracking the exploit estimates that 1,367.59 BTC—worth $86.62 million at current prices—has already been drained from wallets linked to Coldcard.

vibe coded a live dashboard to track drained BTC from coldcards

🔎 https://t.co/FYM6Unodu1

— bradynoah (@bradytc_) July 31, 2026

Coldcard Takes Mitigatory Steps

Coldcard confirmed the vulnerability and said it has halted shipments. It added it has destroyed all remaining units with the affected firmware installed at their facilities.

“Customers who had already received their orders were contacted directly with an advisory and migration steps,” Coldcard said. “Right now, our full focus is helping affected users migrate safely.”

Benzinga reached out to CoinKite, the company behind the wallet, to ask what safeguards, liability protections, or contingency measures they plan to put in place following this incident.

🚨 UPDATE: We halted COLDCARD shipments as soon as we confirmed the vulnerability. All remaining units at our facilities with affected firmware installed were destroyed.

Some orders had already shipped. We contacted those customers directly by email with the advisory and…

— COLDCARD (@COLDCARDwallet) August 2, 2026

CZ Weighs in on Self-Custody Risks

Binance co-founder Changpeng “CZ” Zhao flagged the inherent risks of self-custody in response to the Coldcard wallet drains. He said that bug fixes cannot retroactively secure previously generated wallets and urged the affected users to manually intervene.

“I’m a believer in self-custody, but it puts the burden on you,” he said.

The thing is, with self custody, devs patching the bug won’t fix previously generated wallets. And devs have no way to reach users on air-gapped devices. Your wallet stays open to hackers until you act.

I’m a believer in self custody, but it puts the burden on you. https://t.co/0n9F24erxz

— CZ 🔶 BNB (@cz_binance) August 1, 2026

A hardware wallet is a physical device that stores your cryptocurrency private keys offline, claiming stronger protection against malicious software and online thieves.

However, as the latest incident shows, they are far from foolproof. Ledger, one of the biggest names in the industry, was the target of a sophisticated hacking incident in 2023, which led to the theft of approximately $484,000 in assets.

Price Action: At the time of writing, BTC was exchanging hands at $63,071.73, down 0.40% in the last 24 hours, according to data from Benzinga Pro.

Image via Shutterstock/ ozrimoz