Bitcoin Wallet Flaw Let Thieves Steal $130 Million Without Touching the Device

A flaw in Coldcard Bitcoin wallets made the secret recovery words that protect your funds guessable by attackers — no physical access needed. Galaxy Research puts losses near $130 million as of August 4, 2026, from at least a dozen attackers across multiple waves. Maker Coinkite urges users to update their wallet software and generate new recovery words.