Coldcard Warns Holders to Relocate Funds Amid Ongoing Exploit; OKX Sees Record BTC Deposits

TL;DR

• The Coldcard vulnerability, active in a 2021 firmware, has accumulated losses of up to $114 million drained from self-custody wallets.
• The Mk3, Mk4, Mk5 and Q models are exposed depending on the firmware version installed; Coinkite urges users to migrate funds immediately.
• OKX reports record inflows to centralized exchanges following the exploit, showing a dynamic inverse to the one triggered by the FTX collapse in 2022.

Coldcard, the popular bitcoin hardware wallet manufactured by Coinkite, is at the center of one of the largest thefts linked to a device flaw in the history of the crypto industry.

Developers confirmed that the Coldcard exploit remains active and that accumulated losses have already reached $114 million, drained from self-custody wallets across multiple waves of attacks. The fourth round of sweeps, documented by Galaxy Research, took approximately 449 BTC from 709 addresses in a single day.

The vulnerability originates in a firmware fragment that remained hidden since 2021 and affects configurations where a single key controls funds without requiring a second approval. The core weakness is insufficient entropy: when a seed is generated with low randomness, it can be reconstructed by an attacker who then drains the wallet without needing physical access to the device.

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