Coldcard Breach Losses Surge to $112M, Shifting Self-Custody Paradigm

Galaxy Research confirms $112M in BTC stolen from Coldcard wallets. The breach impacts long-term holders, driving a shift toward multisig solutions and challenging pure self-custody narratives.

Woofun AI reports that Galaxy Research has verified the theft of 1,778.84 BTC, valued at approximately $112.7 million, from 8,600 addresses linked to Coldcard hardware wallet vulnerabilities. This figure excludes unconfirmed attack waves; including them could raise total losses to 2,417.35 BTC, or roughly $153 million. The incident primarily affected long-term BTC holders adhering to self-custody principles, marking one of the most significant security breaches in hardware wallet history.

The breach is altering market perceptions of self-custody security. Multisig wallets have seen no reported stolen transactions, positioning providers like Casa, Unchained, Nunchuk, and Anchorwatch as beneficiaries with surging user registrations and BTC inflows. Galaxy Research suggests the ecosystem may move away from ideological self-custody advocacy toward technical security frameworks that lower barriers for new users.