Key Takeaways
White hats moved 52.37 bitcoins from compromised Coldcard hardware wallets to a Wyoming trust to protect funds from thieves.
According to Bitcoin Magazine, white hats have moved over $4.5 million in bitcoin from hacked Coldcard signing devices to a recovery trust. Galaxy Digital's Alex Thorn reported on X that 52.37 bitcoins were taken to protect potential victims and stored in an address controlled by the Crypto Recovery Trust, a Wyoming trust created to help return funds. Thorn noted these funds represented 2.8% of the Coldcard exploit.
Criminals began taking bitcoin stored using Coinkite's Coldcard hardware wallet on July 31. Coinkite stated that a firmware bug caused seed generation to fall back to a weak software Pseudorandom Number Generator, enabling hackers to guess investor seed phrases. Galaxy Digital tracked the total losses at 1,789.28 bitcoins, valued at $154.1 million.
Nick Bax of Ump Labs confirmed his involvement in rescuing approximately 50 bitcoins from the entropy flaw. Coinkite previously urged investors to update their software or move funds off the hardware wallet following the discovery of the bug.
Source & Fact-Check Note
https://bitcoinmagazine.com/news/white-hats-move-bitcoins-from-coldcard
