White-Hat Hackers Redirect Coldcard Exploit Bitcoin to Recovery Trust
- White-hat actors moved 40.71 BTC (~$3.31 million) on September 21, linked to the Coldcard exploit.
- A broader sweep by Galaxy’s Alex Thorn consolidated 52.37 BTC into a new address for the Crypto Recovery Trust.
- The funds represent roughly 2.8% of the total $130 million Coldcard exploit from March 2021.
- The exploit was due to a firmware flaw in Coinkite’s Coldcard devices, making seed phrases guessable.
The movement of Bitcoin into a recovery trust marks a significant effort to return stolen funds to victims of the Coldcard exploit, which stemmed from a firmware error in March of last year.
This action by white-hat actors reflects an attempt to mitigate damage from one of the largest self-custody breaches, with only a small fraction of the stolen funds being actively recovered so far.(Source)
