The Coldcard Wallet Hack is now at a new stage, as the hacker who was behind all the attacks has managed to move around 45% of the Bitcoin stolen in the third wave of attacks, says Galaxy Research.
Galaxy Research pointed out that the hacker is still transferring huge amounts of the stolen BTC. Previously having transferred part of the funds via THORChain and exchanging them for ETH on September 2, the hacker has now employed the technique of CoinJoins to obscure the trail of the stolen funds.
About 97.09 BTC, having an approximate value of $7.8 million, has already been spent from the impacted vaults.
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Coldcard Wallet Hack Attacker Targets Largest Vaults First
Regarding the Coldcard Wallet Hack, it seems that the hacker is transferring the stolen Bitcoins based on the size of each vault, from vaults with the most number of Bitcoins to vaults with the smallest number.
According to Galaxy, vaults from #1 to #11 have been moved by the hacker. The next 10 vaults, which are still untouched, contain about 30.81 BTC, while vaults #61 to #293 contain a total of 33.77 BTC.
Only a small amount of the stolen money has been transferred to other wallets by the hacker. Galaxy estimates that 82% of the stolen Bitcoins in the broader Coldcard hack is still in the original address controlled by the hacker.
Firmware Bug Linked to Coldcard Wallet Hack
The Coldcard Wallet Hack started on July 30 and was associated with an existing flaw in the firmware provided by Coinkite in 2021.
This particular vulnerability was caused by the randomness limitation applied when generating wallet seeds by the Coldcard devices. Therefore, certain wallet seeds were open for brute force attacks.
In consequence, the hackers would be able to obtain the private seed phrases and withdraw Bitcoin from compromised single-signature addresses.
Galaxy Research had estimated by the mid of August that around 1,779 BTC were stolen from about 190 victims through more than 8,600 addresses.
Coldcard Wallet Hack Losses Could Be $143.9 Million
The total damage related to the Coldcard Wallet Hack might exceed previous expectations because Galaxy indicated that the hacker had co-spent the money from an additional vault, which includes 58 addresses of the Coldcard victims.
These addresses would raise the number of lost coins to 1,806 BTC. The value of the lost Bitcoin amounts to approximately $143.9 million at current rates.
Another set of related cyberattacks, known as “Wave 4,” has been brought up by Galaxy as well. However, there has been no confirmation of the existence of the fourth wave of attacks by the research company.
The ongoing activity of the stolen Bitcoin demonstrates that the attack on Coldcard is still ongoing and that the hacker is using tactics such as cross-chain swaps and CoinJoin to obscure the trail.
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