How bitcoin cold wallets lost $70 million in an attack that never touched the devices

Share This Post

Every step of that runs on the attacker’s machine. The victim’s device is not involved at any point and could be powered off in a safe on another continent.

Galaxy’s breakdown shows the process running. Of the drained wallets, 1,183 used the modern native segwit address format, seven used an older standard and six an older one still. Nobody targets a specific victim across three address formats at once.

That is systematic enumeration, checking each candidate seed against every path it might have produced. The operator can widen the search, refine it and return whenever they choose.

Galaxy warned further waves are likely if owners do not move their funds.

Nor can an owner determine whether they are exposed. There is no test to run against your own wallet that reveals whether your seed sits inside the reproducible range.

Attack might not be fully finished

Coinkite, Coldcard’s maker, has warned Mk3 owners and says its newer devices are unaffected, while Block’s report places the Mk2, Mk4, Q and Mk5 in scope as well. Until that is resolved, anyone who generated a seed on the affected firmware has to assume the worst rather than verify it.

The attacker did make one mistake, however.

Block’s Clay Garrett said on X that the operator used a paid account at a “well-known blockchain data provider” to query the source addresses during the sweeps, and that the provider’s internal logs matched the suspected workflow with what he called extraordinary specificity, down to the number, timing and sequence of requests.

Related Posts

CLARITY Act could get another shot during lame-duck session, policy advocate says

Digital Sovereignty Alliance managing director Adrian Wall said senators...

Over 38 Million USDT in Risk-Related Funds Intercepted

MUTSAMUDU, Comoros, Sept. 16, 2026 (GLOBE NEWSWIRE) — MEXC,...

UK FCA Issues Crypto Authorization Guidance Ahead of New Regime

The UK Financial Conduct Authority has issued final guidance outlining...

Theo Brings Silver Leasing Onchain With $40M thSLVR Launch

Theo, an onchain finance platform founded by ex-Optiver and...

Bernstein Expects ‘Aggressive’ Rulemaking from SEC, CFTC, Following CLARITY Act Failure

Bernstein analysts expect “aggressive and swift” rulemaking from the...

Crypto Turns to Regulators After CLARITY Setback

Crypto industry leaders are looking to US financial regulators...