Galaxy Research states that the new signs of attack on the large-scale theft of Coldcard ' s hardware wallet are decreasing, but that it has been established that the loss is still being repaired. The Agency currently counts at least 1,778 bitcoin stolen since 30 July, amounting to approximately $112 million at current prices; if a group of unrecognized fourth wave attacks were established, the total loss could rise to 2,417 bitcoin, or more than $150 million.

It has been confirmed that the attack did not recur after 6 August.

According to Galaxy, no new chain activity was detected after 6 August, out of the confirmed three major and 41 smaller attacks. This does not mean, however, that the loophole has lapsed, and is more likely to indicate that the easily affected wallets have largely migrated or that the funds have been transferred earlier.

According to the agency, more than 190 victims have been directly contacted and the identity of the theft verified accordingly. Galaxy continued to recommend that the funds be transferred to a new address, still using single-marked bankard wallet-denominated users.

The loophole stems from the change in the way the crosswords are generated.

According to Galaxy, after an update of the solid in 2021, the helpword generation process was switched from a hardware random number of chips to a software substitution, leading to a reduction in key strength from 128 to a minimum of about 40 bits. The attackers can then re-establish the syllable by combining the equipment sequence with the clock state and then transfer the funds on the chain.

Such attacks do not depend on fishing links, malicious software or physical contact with equipment, and therefore have a wider impact and are more difficult to detect in a timely manner by ordinary users.

Over 5,200 addresses cleared.

Galaxy disclosed that the largest confirmed attack occurred in the first few minutes, with 1,082.65 bitcoin transferred from 1,195 addresses, valued at approximately $70.5 million.

  • Forotprint E: 2,148 addresses lost 209.94 bitcoins
  • Wave 3: related to 1,912 addresses and lost 208.24 bitcoins
  • Three major attacks plus 41 smaller traces, with more than 5,200 addresses affected

As at 13 August, 1,499.27 bitcoin had not been transferred from the attacker's control address, at a level close to $93.9 million. Galaxy stated that of at least 1,778 stolen bitcoin, approximately 1,531 remained at the assailant ' s address and some 246 were transferred after theft, of which about 65 per cent went into the CoinJoin Mix.

The financial resources are still limited.

Galaxy is currently only able to trace 174.97 bitcoin to a clearer destination. Most of the money goes into CoinJoin's private currency mix and a small amount goes to KuCoin and Jump Cripto.

This incident has led to the transfer of some $15 billion bitcoin to a safer hosting approach. At the same time, Ledger warned that the wallet security system needed to address the new risks posed by AI-assisted detection of loopholes. Other hardware wallet manufacturers in the industry warned that fishing attacks were on the rise following the fermentation of the incident.