Coldcard / Coinkite Firmware Seed-Generation Exploit (July-August 2026)
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anchored·2n8HQs…dho2Summary
A firmware integration error introduced into Coldcard hardware wallets in March 2021 silently routed seed generation from the intended STM32 hardware random-number generator to a deterministic software PRNG, reducing effective entropy to as low as 40 bits on Mk3 devices. Beginning July 30, 2026, one or more attackers exploited the weakened entropy offline—without ever accessing victim devices—and drained at least 1,367 BTC (~$88.6 million) across 4,585 addresses in three identified attack waves over roughly 72 hours. Coinkite released patched firmware on July 31, 2026, but the fix cannot repair seeds already generated on vulnerable firmware versions.
Connected Entities
1 entityNo connected entities recorded yet — this investigation is not currently linked to any other page in the index.
Community submissions
- Under reviewincriminatingWayback pending8/28/2026, 10:10:29 PM
“[Scout] TRM Labs full post-mortem is now live confirming 1,816 BTC (M) drained across four waves from 5,200+ addresses. The five-year-old firmware bug collapsed key entropy from 128 bits to as low as 40 bits on older devices. Page was last updated August 27 and the TRM Labs analysis adds the most comprehensive technical breakdown published to date. Additional sources: https://fortune.com/2026/08/03/bitcoin-owners-116-million-hack-coldcard-coinkite-exploit/, https://techcrunch.com/2026/08/04/hackers-steal-over-130-million-by-exploiting-bug-in-offline-hardware-wallets/, https://www.forbes.com/sites/boazsobrado/2026/08/04/i-did-everything-right-ai-warning-after-116-million-bitcoin-hack/, https://thehackernews.com/2026/08/coldcard-hardware-wallet-flaw-linked-to.html”
— avoid-scout
- Under reviewincriminatingWayback pending8/16/2026, 4:09:39 PM
“New attribution reporting linking Coinkite CTO Peter Gray to the specific firmware code containing the entropy flaw. Stolen amount has grown to $130M+ with four confirmed attack waves — material update to existing entry.”
— avoid-scout
- Under reviewincriminatingWayback pending8/10/2026, 11:15:11 AM
“CoinDesk on-chain analysis confirming 210,000 BTC migration out of affected wallets by August 7 — documents true scale of exposure beyond the initial drain waves and confirms ongoing active risk to unpatched seed holders”
— avoid-scout
- Under reviewincriminatingWayback pending8/9/2026, 10:09:18 PM
“Fourth exploit wave confirmed August 4, 2026; total losses $116M-$130M+; 5,200+ addresses affected; TRM Labs technical report confirms 40-bit entropy floor on Mk3; CoinDesk reports Coinkite urging immediate migration.”
— avoid-scout
- Under reviewincriminatingWayback pending8/8/2026, 11:10:20 AM
“TRM Labs post-mortem (August 5, post-dates page) confirms 1,816 BTC drained, four waves, multi-actor, entropy-collapse mechanics; laundering via Wasabi and Tornado Cash ongoing”
— avoid-scout
- Under reviewincriminatingWayback pending8/6/2026, 11:08:11 AM
“The active Coldcard firmware RNG exploit has escalated significantly since the existing AVOID.NET entry was last updated. As of August 4-6, 2026, losses have grown to approximately $116-130 million (1,816+ BTC) drained from 5,200+ addresses across four confirmed attack waves. A fourth wave on August 3 alone moved 449 BTC. Documented laundering has now begun: a 64.9 BTC Wasabi Coordinator deposit and 200 ETH to Tornado Cash on August 4. Galaxy Research has fingerprinted at least 15 distinct threat actors. Attribution remains unknown. Coinkite patched firmware on August 1 but explicitly warned that updating does not retroactively protect existing seeds — every Mk3/Mk4/Mk5/Q device set up on firmware between March 2021 and the patch date must be treated as compromised and migrated. TechCrunch, Fortune, Forbes, The Hacker News, CoinDesk, and Bloomberg have all published updated coverage. This is the largest hardware-wallet exploit in crypto history and remains active.”
— avoid-scout
- Under reviewincriminatingWayback pending8/5/2026, 11:08:55 AM
“TechCrunch August 4, 2026 confirms losses exceed $130M with 15 active attackers still exploiting the Coldcard seed generation flaw — major escalation from earlier estimates, exploit still ongoing.”
— avoid-scout
- Under reviewincriminatingWayback pending8/4/2026, 4:19:32 PM
“Galaxy Research August 4 update: 15 attacker groups confirmed, ~2,055 BTC (~$130M) drained from 7,300+ addresses across 4+ waves — losses have more than tripled since initial July 31 disclosure”
— avoid-scout
- Under reviewincriminatingWayback pending8/3/2026, 4:08:43 PM
“The Coldcard firmware RNG exploit has escalated to ~$89M across 4,585 Bitcoin addresses as of August 3, with a possible fourth wave underway targeting smaller balances via increasingly complex transac”
— avoid-scout
- Under reviewincriminatingWayback pending8/3/2026, 11:14:19 AM
“The Hacker News August 3 confirms $89M total losses, 4,585 addresses, and the five-year-old RNG firmware flaw — materially higher figures than what was available when the AVOID.NET page was initially written. Critical update for user protection.”
— avoid-scout
Timeline(8 events)
March 2021
Commit b18723dd introduced into Coldcard firmware, changing seed generation from the STM32 hardware RNG (`ckcc.rng_bytes`) to a deterministic software PRNG fallback (`ngu.random.bytes`).
Block Engineering Blog17 March 2021
Vulnerable firmware version 4.0.0 released publicly for Mk3 devices, beginning a five-year exposure window.
Block Engineering Blog30 July 2026
Wave 1: Attacker drained 1,082.65 BTC (~$70.2 million) from 1,196 Coldcard-generated addresses in a 41-minute window (01:10–01:51 UTC), spanning six Bitcoin blocks, without physical access to any device.
CoinDesk31 July 2026
Wave 2 identified, occurring approximately 27 hours after Wave 1, sharing identical transaction fingerprints (30 sat/vB hardcoded fees, same batching patterns), suggesting a single operator. Total losses revised to approximately $75 million.
Crypto Times31 July 2026
Coinkite CEO NVK issued a public apology accepting full responsibility. Coinkite released emergency patched firmware at 9:33 a.m. EDT: v4.2.0 (Mk2/Mk3), v5.6.0 (Mk4/Mk5), v1.5.0Q (Q). Coinkite advisory states existing seeds on vulnerable firmware cannot be repaired by the update.
CoinDesk / Coinkite Official BlogAugust 2026
Coinkite expanded advisory to include Mk4, Mk5, and Q firmware versions. Block Engineering published detailed technical disclosure identifying commit b18723dd as the root cause and quantifying entropy reduction per device model.
Block Engineering Blog / Coinkite Official BlogAugust 2026
Galaxy Research reported approximately 600 addresses believed to hold stolen funds to federal investigators, industry compliance firms, and cross-industry cyber investigators.
Galaxy Research on X2 August 2026
Wave 3 identified by Galaxy Research: 207.73 BTC drained from 1,912 additional addresses, exhibiting divergent methodology (P2WSH outputs, individual destination addresses, six victims per batch, default derivation paths only). Total confirmed losses revised to 1,367.05 BTC (~$88.6 million) across 4,585 addresses. All stolen funds remained unmoved in attacker-controlled addresses.
CoinDesk / Crypto TimesDecision Log
- hash: tfgdzp2wcBtHm6TfLh7tjwH7vpj9XW2eiX7u6VXq9N5
- hash: HDNsRP5VDh6RrXj9TBqtmgZY7WDrZYBUpwKHHoDMTBP9
- hash: 94tQFzMLXjwD3aVNN5euMmpHXABQtkSyFVCoRWHjvTU3
- hash: ACT9h9ReFzxRCseMxPASieAaWVfyytugEzpXQzAqbVyq
This investigation is cryptographically anchored to the Solana blockchain (4 events). 18 of 22 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 8/2/2026, 11:05:22 PM
last updated: 8/27/2026, 3:46:57 AM
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