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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InAmid escalating concerns over cold storage security, the Coldcard firmware exploit has intensified, with total losses reaching approximately 1,367 BTC, valued at nearly $89 million. Galaxy Research confirmed a third wave of automated thefts targeting 1,912 additional addresses between July 31 and August 1, bringing the total number of compromised wallets to 4,585 since the attack began.
Technical analysis indicates that attackers shifted tactics during the third wave, utilizing P2WSH vaults to obscure the trail of stolen funds and complicate on-chain tracking. Per market data and analyst reports, the flaw originates from firmware shipped in March 2021; Binance founder Changpeng Zhao has since warned that hardware wallets are not 100% foolproof, especially as firmware updates cannot fix seeds already generated on compromised devices.
Looking ahead, specific price data for BTC was unavailable at the time of this report on August 2, 2026, leaving the market focused on the stability of user trust in self-custody solutions. Traders are monitoring upcoming macro catalysts, such as the US CB Consumer Confidence data on July 28, 2026, which may influence broader risk appetite across both digital and traditional asset classes.
Update: Manufacturer Coinkite issued a warning on July 30 stating that a software error caused seed phrases to be generated with insufficient randomness, enabling the exploit. This event has triggered the largest movement of Bitcoin since the FTX collapse, significantly distorting broader market signals.