Coldcard Bitcoin Wallet Hack Losses Top $100 Million as Attacks Continue

Confirmed losses from an ongoing exploit targeting the Coldcard Bitcoin hardware wallet have exceeded $100 million, according to Galaxy Research. The firm has warned that a suspected fourth wave of attacks could push total losses to as much as $130 million.

The attack exploits a firmware vulnerability that was introduced back in March 2021 and remains active today, meaning users who have not updated or checked their devices could still be at risk. While the incident centres on a specific cryptocurrency hardware wallet, it highlights a broader lesson for any business relying on hardware-based security devices: firmware flaws can lie dormant for years before being discovered and exploited at scale.

For Australian small businesses using hardware wallets or other firmware-dependent security devices to protect digital assets, this incident is a reminder that hardware is not automatically more secure than software, and that device manufacturers' security update processes matter just as much as the strength of the hardware itself.