BNY Partners with Galaxy to Add Crypto Staking to Institutional Custody Platform

Galaxy Research has confirmed that losses from the Coldcard wallet incident have exceeded $100 million, with 1,596 Bitcoin stolen from approximately 7,300 addresses across three major attack waves and 14 smaller incidents. Investigators report that 90% of the stolen Bitcoin remains unmoved as they examine a suspected fourth wave that could push total losses to $130 million worth of Bitcoin.

Galaxy Digital's research arm has identified 73 victims who contacted their team, confirming the first three major attacks and helping identify smaller "footprints" that may represent opportunistic attackers exploiting the vulnerability. With "medium-high" confidence, the research group believes a fourth wave of attacks is underway, potentially increasing total losses to 2,055 Bitcoin. This incident underscores the critical importance of security in the cryptocurrency ecosystem.

Tyler Williams, a key architect of the Trump administration's digital asset agenda, has abruptly exited the US Treasury Department, according to a Punchbowl News report. The senior official overseeing digital asset policy and top adviser to Treasury Secretary Scott Bessent departed on Friday, creating a leadership vacuum as Congress struggles to advance landmark crypto legislation.

Williams, who joined Treasury in early 2025 after serving as head of policy at Galaxy Digital, played a central role in shaping the administration's vision to make the US the "crypto capital of the world." His departure comes at a critical juncture for the crypto industry as lawmakers seek to balance financial innovation with regulation. The abrupt exit of the Trump administration's top crypto policy architect raises questions about the continuity and future direction of the nation's digital asset agenda.

The week of August 3 is set to be a pivotal period for cryptocurrency markets, with investors closely watching US employment data, financial reports from Circle and Galaxy Digital, and quarterly earnings from Bitcoin-related companies listed in the United States. The convergence of these factors could determine market direction in a period of heightened volatility. US employment data is crucial for assessing Federal Reserve monetary policy, which directly impacts risk appetite for assets like cryptocurrencies. Meanwhile, reports from Circle (issuer of USDC) and Galaxy Digital will provide insights into the stablecoin ecosystem and crypto fund health, respectively.

Alex Thorn, Head of Firmwide Research at Galaxy Digital, has publicly criticized Duel Casino for refusing to block nearly 230 ETH allegedly stolen from a victim of the Coldcard vulnerability. The escalating dispute between the crypto exchange and online casino highlights growing tensions in the digital asset ecosystem over security protocols and ethical responsibilities. Duel Casino maintains its position of freezing funds only with concrete evidence linking them to the hack, creating a complex legal standoff.

Duel Casino's stance raises critical questions about user protection and platform accountability in the rapidly evolving crypto landscape. As the Coldcard hack continues to spread across multiple exchanges and gaming platforms, the incident is forcing the entire industry to reevaluate security measures and compliance standards. This dispute underscores the challenges faced by crypto businesses in balancing security obligations with legal due process in an increasingly regulated environment.

Galaxy Research, the research arm of crypto investment company Galaxy Digital, has identified 1,196 addresses that lost 1,082.65 Bitcoin, worth approximately $70.2 million, during a 41-minute window related to the Coldcard wallet incident. This analysis significantly expands the initial loss estimates, which had been pegged at 594.48 Bitcoin valued around $38 million.

The Bitcoin movements were traced between 1:10 AM and 1:51 AM UTC on July 30 across blocks 960,183 to 960,191, approximately 30 hours before Coldcard published its first security advisory. The Coldcard incident, Bitcoin security, hardware wallet vulnerability, cryptocurrency theft, Galaxy Digital, blockchain analysis continues to raise concerns about the security of hardware wallets and the need for better communication protocols during security emergencies.