Coldcard hack drains US$114M in Bitcoin

• A Coldcard exploit has drained at least 1,816 Bitcoin (CRYPTO:BTC), worth about US$114 million, since July 30.
• Cantor said the breach could increase flows to regulated custodians, while FRNT Financial pointed to Bitcoin ETFs.
• Analysts expect wallet providers to strengthen security rather than users abandoning self-custody entirely.

A Coldcard exploit has drained at least 1,816 Bitcoin (CRYPTO:BTC), worth about US$114 million, from over 5,200 addresses.

Researchers linked the losses to a firmware flaw affecting the hardware wallet’s key-generation process.

“The read-through is second-order but we would expect that token flows to custodians and exchanges will increase following the hack,” said digital asset specialist Nico Pasquariello.

Cantor said the incident could benefit Coinbase Global, Robinhood Markets and other regulated crypto providers.

FRNT Financial said the breach could increase demand for spot Bitcoin ETFs among investors seeking alternatives to managing private keys.

The incident shows self-custody still depends on the security of hardware and software used to manage private keys.

FRNT expects wallet providers to strengthen security, while some investors may instead move towards regulated Bitcoin investment products.

At the time of reporting, Bitcoin price was $64,583.39.