Galaxy Research flagged a third wave of sweeps tied to weak Coldcard-generated keys, with the attacker now targeting smaller balances and changing how funds are collected onchain.

Bitcoin security experts said the unexplained $38 million wallet drain may involve flawed seed-generation entropy, though the cause and any Coldcard link remain unconfirmed.

A hardware wallet randomness bug turned “impossible to guess” seeds into guessable ones, and $38 million is already gone.

Over $70 million in Bitcoin has been pinched. Coldcard has since urged its users to take precautions.