Crypto Breaking News

Coldcard Vulnerability Highlights Hardware Wallet Testing Gaps, Kraken Coldcard’s five-year seed-generation flaw has become more than a single-vendor incident, with Kraken’s chief security officer Nick Percoco arguing that it highlights a structural gap in how hardware wallets are independently tested. In particular, he says security reviews often verify that the “right” entropy source exists in the codebase, but may not confirm that production firmware actually calls the validated randomness path. Percoco’s warning follows an ongoing exploit campaign widely believed to target weak seed phrases produced by affected Coldcard devices. As of Sunday, more than 4,500 addresses were reported impacted, with losses estimated at nearly $90 million in Bitcoin, according

South Korea Sees $367M Stablecoin Outflows in June, Report Shows South Korea extended a long-running outflow trend as stablecoins continued to leave the country for offshore trading platforms. In June, the nation recorded net stablecoin outflows of 560.3 billion won (about $367 million), keeping South Korea’s streak of monthly net outflows at 18 consecutive months. The latest numbers, reported by Yonhap News Agency using data from the Financial Supervisory Service (FSS), point to large-scale transfers by South Korea’s biggest crypto venues. Yonhap said the five major exchanges—Upbit, Bithumb, Coinone, Korbit and Gopax—sent 2.7 trillion won (about $1.81 billion) in stablecoins overseas in June while receiving 2.2 trillion won (about $1.44 billion)

Coldcard’s 5-Year Flaw Shows Hardware Wallet Testing Gaps, Kraken Chief Coldcard’s five-year seed-generation issue has turned into a wider debate over how hardware wallets are independently verified, according to Kraken’s chief security officer Nick Percoco. In an X post on Sunday, Percoco said the incident should prompt makers of self-custody devices to require end-to-end checks that confirm the randomness source reviewed in testing is the same one actually executed by production firmware. The comments arrive amid an ongoing exploit believed to target vulnerable Coldcard devices by abusing weak seed phrases. By Sunday, more than 4,500 addresses had reportedly been affected, with losses estimated at nearly $90 million in Bitcoin, according to

Coldcard exploit drives Bitcoin outflows as “hodlers” consolidate—Aug 2 digest Recent activity around Coldcard hardware wallets has reignited concerns about the safety of seed generation. Galaxy Research, the research arm of Galaxy Digital, estimates that a third weekend wave of attacks tied to Coldcard-generated addresses resulted in losses totaling 1,367 BTC (about $88.6 million) across 4,585 addresses. At the same time, on-chain data suggests that smaller Bitcoin holders have been moving quickly toward exchanges or other custody routes. CryptoQuant head of research Julio Moreno said that on Friday, Bitcoin transfers below 1 BTC reached their highest daily level since 2022, with 39,600 BTC moved—just 300 BTC shy of the 39,900 BTC

Coldcard Hack Fallout Widens as Bitcoin Losses Hit $88.6M Bitcoin has seen a spike in very small transfers—moves of less than 1 BTC—that match the intensity last observed around the collapse of FTX. The renewed activity comes as researchers continue to track a suspected Coldcard wallet-related hack, underscoring how quickly users are reacting when self-custody tools appear compromised. According to CryptoQuant head of research Julio Moreno, Friday recorded the highest daily level of sub-1 BTC transfers since November 2022, with 39,600 BTC moved. The total was just 300 BTC below 39,900 BTC transferred on Nov. 16, 2022, shortly after FTX filed for bankruptcy. Moreno framed the comparison as a sign

Trump Media Moves 2,628 BTC to Crypto.com, Wallet Drops to 4,261 Trump Media & Technology Group, the parent company behind the Truth Social platform, has continued trimming its Bitcoin exposure, according to on-chain tracking shared by Lookonchain. The latest activity adds to a months-long pattern of sales that have significantly reduced the company’s reported BTC balance. In transfers identified by Lookonchain using Arkham data, Trump Media-linked wallets sent 2,628 BTC to Crypto.com. The move is reported to be worth roughly $165 million, extending a selling cycle that began about seven months ago. Key takeaways Trump Media-linked wallets reportedly transferred 2,628 BTC (about $165M) to Crypto.com, per Lookonchain’s analysis of Arkham data. Lookonchain

Trump Media Cuts Another 2,628 BTC; Wallet Drops to 4,261 BTC Trump Media & Technology Group, the parent of Truth Social, has continued to reduce its reported Bitcoin exposure with another batch of transfers to exchange infrastructure. According to Lookonchain, the company sold 2,628 BTC—valued at roughly $165 million at the time of the transfers—via movements to Crypto.com, based on blockchain data compiled from Arkham. The latest activity adds to a broader pattern of selling observed over the past seven months, shrinking the company’s reported holdings and feeding into ongoing political scrutiny of Trump-linked crypto projects and the ethics questions surrounding digital asset ownership. Key takeaways Trump Media-linked wallets transferred 2,628 BTC

Coldcard Hack Triggers Largest Sub-1 BTC Shift Since FTX, CryptoQuant Bitcoin appears to be seeing a renewed pattern of rapid, smaller transfers—an on-chain behavior not observed at similar levels since the immediate aftermath of the FTX collapse. On Friday, transfers below 1 BTC surged to the highest daily level since November 2022, totaling 39,600 BTC, according to research shared by CryptoQuant head of research Julio Moreno on Saturday. Moreno’s comparison is stark: the figure sat just 300 BTC under the 39,900 BTC moved on Nov. 16, 2022, days after FTX filed for bankruptcy. “The Bitcoin plebs had not moved this amount of BTC in a day since the FTX collapse,” Moreno

Crypto Legal Roundup: FTX Case Advances as Polymarket Dispute and $35K Penalty Emerge Federal prosecutors are continuing to litigate the fallout from the collapse of FTX, as defense teams push back on what juries can hear and how certain market activities are regulated. In the Southern District of New York (SDNY), Michelle Bond—whose husband, former FTX executive Ryan Salame, is serving a 90-month sentence after pleading guilty in 2023—has asked the court to block references to that guilty plea in a campaign finance case. At the same time, other SDNY-related crypto-adjacent legal fights are highlighting how prediction markets and event contracts can collide with insider-trading and commodity regulation arguments. Separate actions involving a former

Crypto Court Battle Highlights: Key On-Chain Legal Updates This Week A Friday filing in the U.S. District Court for the Southern District of New York (SDNY) seeks to limit what prosecutors can use in the campaign-finance case involving Michelle Bond, the wife of former FTX Digital Markets co-CEO Ryan Salame. Bond’s attorneys argued that evidence tied to Salame’s 2023 guilty plea—while relevant to his own conduct—should not be admitted against her because it carries a risk of unfair prejudice and, in their view, offers little direct proof of Bond’s knowledge or intent. The motion also asks the court to factor in details from Bond’s contemporaneous divorce and custody proceedings. Key takeaways