Coldcard Hardware Wallet Flaw Linked to $130M Bitcoin Theft

A serious security flaw discovered in Coldcard hardware wallets has been tied to one of the largest cryptocurrency theft incidents of 2026, with losses now exceeding $130 million in Bitcoin. Hardware wallets are typically marketed as one of the safest ways to store cryptocurrency because they keep private keys offline, away from internet-connected devices. This breach highlights that even offline storage solutions are not immune to critical vulnerabilities.

According to reports, the stolen funds were funnelled through cryptocurrency mixing services, tools designed to obscure the origin of digital funds and make tracing stolen assets far more difficult for investigators. This laundering step is a common tactic used by cybercriminals to convert stolen crypto into usable funds while evading law enforcement.

While this incident primarily affects individuals and organisations using Coldcard wallets, it serves as a reminder for any business holding cryptocurrency assets to stay alert to vendor security advisories and firmware updates. Businesses relying on hardware wallets for treasury or client funds should treat this as a signal to review their crypto custody practices.