Coldcard Losses Near $114 Million as a Fourth Sweep Hits: Why Is Bitcoin Rising Anyway?

Five days after the first sweep, the Coldcard incident has stopped looking like a single event and started looking like a slow harvest. Blockchain analysts tracked a fourth round of drains running through Monday, and the running total of observed losses is now closing on $114 million. What has not happened is the price collapse many traders expected. Bitcoin reclaimed $63,000 in Asian hours on Tuesday and touched just above $64,100 overnight, up roughly 2 percent on the day.

That gap between the severity of the security failure and the calm in the order book is the real story right now.

What actually happened to the Coldcard wallets?

The failure was not a phishing attack, not malware, and not physical access to anyone's device. It happened at the moment each wallet was created.

Coldcard firmware calls a function to pull randomness when it generates a recovery seed. Two implementations of that function sat in the codebase with the same signature: the hardware random number generator that Coinkite wrote for the STM32 chip, and a software fallback inherited from MicroPython. A preprocessor guard checked only whether a build setting was defined and never tested its value, so the build completed against the software fallback without a single warning.

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