---
title: "Galaxy Digital Says $70,000,000 Drained From Bitcoin Holders in Coldcard Wallet Exploit"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294564240.md"
description: "Galaxy Digital reports $70 million stolen from Coldcard Bitcoin wallets due to a firmware bug reducing randomness in recovery phrase generation. Coinkite, the manufacturer, apologized and released emergency updates (Mk3 v4.2.0+, Mk4/5 v5.6.0+, Q v1.5.0Q+) to fix the vulnerability. Users are urged to generate new recovery phrases on updated firmware and migrate funds, as existing seeds remain insecure."
datetime: "2026-08-01T00:06:51.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294564240.md)
  - [en](https://longbridge.com/en/news/294564240.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294564240.md)
---

# Galaxy Digital Says $70,000,000 Drained From Bitcoin Holders in Coldcard Wallet Exploit

Researchers at Galaxy Digital say about $70 million has been stolen due to an exploit in the popular Bitcoin wallet Coldcard.

The attack was enabled by a firmware bug that dramatically reduced the randomness of how the wallet creates its secret recovery phrase.

According to Galaxy, the vast majority of the funds were stolen in less than an hour.

Coinkite, the company behind Coldcard, says it takes full accountability for the firmware bug and has apologized to affected users.

The company has released emergency firmware updates for all affected models: version 4.2.0 or later for Mk3, 5.6.0 or later for Mk4 and Mk5, and 1.5.0Q or later for the Coldcard Q.

These updates remove the vulnerable software fallback path and ensure new seeds use the intended hardware true random number generator.

Critically, a firmware update alone does not secure existing seeds. Users must generate an entirely new recovery phrase on the fixed firmware and migrate their BTC.

### Related Stocks

- [GBTC.US](https://longbridge.com/en/quote/GBTC.US.md)
- [HODL.US](https://longbridge.com/en/quote/HODL.US.md)
- [BTCO.US](https://longbridge.com/en/quote/BTCO.US.md)
- [FBTC.US](https://longbridge.com/en/quote/FBTC.US.md)
- [BRRR.US](https://longbridge.com/en/quote/BRRR.US.md)
- [BTCW.US](https://longbridge.com/en/quote/BTCW.US.md)
- [BITB.US](https://longbridge.com/en/quote/BITB.US.md)
- [IBIT.US](https://longbridge.com/en/quote/IBIT.US.md)
- [EZBC.US](https://longbridge.com/en/quote/EZBC.US.md)
- [ARKB.US](https://longbridge.com/en/quote/ARKB.US.md)
- [BITO.US](https://longbridge.com/en/quote/BITO.US.md)
- [03008.HK](https://longbridge.com/en/quote/03008.HK.md)
- [03042.HK](https://longbridge.com/en/quote/03042.HK.md)
- [03430.HK](https://longbridge.com/en/quote/03430.HK.md)
- [BTCE.DE](https://longbridge.com/en/quote/BTCE.DE.md)
- [BTCHKD.VAHK](https://longbridge.com/en/quote/BTCHKD.VAHK.md)
- [BTCUSD.VAHK](https://longbridge.com/en/quote/BTCUSD.VAHK.md)
- [GLXY.US](https://longbridge.com/en/quote/GLXY.US.md)
- [BRPHF.US](https://longbridge.com/en/quote/BRPHF.US.md)

## Related News & Research

- [Bitcoin Holders Lose $88,600,000 in Coldcard Crypto Wallet Exploit: Galaxy Researchers](https://longbridge.com/en/news/294653457.md)
- ["Nothing Is 100%": CZ Warns Bitcoin Holders After $89 Million Coldcard Wallet Exploit](https://longbridge.com/en/news/294608742.md)
- [Coinkite Warns Coldcard Mk3 Owners After $38.3 Million In Bitcoin Is Drained From Nearly 500 Wallets](https://longbridge.com/en/news/294490475.md)
- [Twenty One Capital CEO Zagury targets Bitcoin-beating risk-adjusted returns through operating-company strategy](https://longbridge.com/en/news/293912987.md)
- [BIP-110 Activation Frozen After Coldcard Exploit: Is the Soft Fork Dead?](https://longbridge.com/en/news/294612677.md)