Galaxy has raised its estimate of Bitcoin lost through a Coldcard-related security issue to $70 million, sharpening the Coldcard Bitcoin loss estimate that has drawn attention to hardware wallet custody risk.
The revised figure was attributed to Galaxy’s research team, as reported by The Block, which tied the losses to a Coldcard vulnerability. Galaxy’s research arm also published its findings on its X account.
The update reframes the incident as a larger event than earlier assessments suggested, moving it from an isolated concern to a material custody-risk story for Bitcoin holders using self-managed hardware. For related coverage, see Bitcoin analysis eyes serious volume after Binance sees 9K BTC daily outflow.
Galaxy’s estimate was revised upward
The core development is that Galaxy reassessed the scale of the reported loss, arriving at the higher $70 million estimate rather than reaffirming a previous number. The change indicates the firm considered additional exposure when recalculating. For related coverage, see Strategy Overhauls Its Bitcoin Metrics: What the New Reporting Means.
The available reporting supports the revised total and the attribution to Galaxy, but it does not detail the exact methodology, timeline, or wallet mechanics behind the recalculation. Readers tracking the incident will want clarity on what changed between the earlier and latest figures before treating the number as final. For related coverage, see Bitcoin Holds Near $66,300 as Chips Rally, Yen Slides.
The issue traces to seed generation on Coldcard hardware, which Coinkite addressed in an official Coldcard seed generation warning. That advisory is the primary source on the underlying wallet behavior.
Why the figure matters for Bitcoin custody
A loss estimate at this scale elevates the custody-risk angle for anyone relying on hardware wallets for Bitcoin self-storage. The revision suggests the exposure is broad enough to warrant scrutiny of seed generation and key management practices.
Galaxy has been active on Bitcoin security more broadly, including its $5 million Bitcoin security fund and a separate Bitcoin quantum initiative, both of which point to a continued focus on protecting Bitcoin holdings from technical failure modes.
For market participants and holders following the incident, the takeaway is narrow: the estimated loss is now larger, the source is Galaxy, and the underlying cause has been acknowledged by the wallet maker. Further detail on how the total was reached remains outstanding.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
