Coldcard exploit sparks $90M Bitcoin flight as market braces for Clarity Act deadline

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.

Canadian hardware wallet manufacturer Coldcard has issued an urgent warning to Mk3 device users, urging them to migrate funds due to a potential seed-generation risk in specific firmware versions. The company identified vulnerabilities in firmware versions 4.0.1 through 5.0.3, released between March 2021 and the final Mk3 firmware.

The warning comes as Bitcoin security specialists investigate a coordinated sweep of 594.48 BTC (valued at $38 million) from single-signature addresses. While no definitive public evidence has established a connection between the Mk3 issue and these transfers, the crypto community remains on high alert. The Mk4, Q, and Mk5 models remain unaffected by the vulnerability, according to the company's initial analysis.

Bitcoin (BTC) is consolidating around the $64,000 level as traders assess whether the cryptocurrency can regain higher ground following a sharp pullback earlier in July. The market is closely watching for a potential range breakout, with price targets set between $68,000 and $69,000. Bitcoin analysis indicates that the current consolidation phase is critical in determining the next major trend in the cryptocurrency market.

The current consolidation phase follows the significant volatility that marked early July when Bitcoin experienced a substantial decline. Analysts are closely monitoring support and resistance levels, as a breakout above the current range could signal a resumption of the upward trend. Bitcoin market sentiment remains divided, with optimists betting on a recovery while cautious observers watch for potential further declines.

Mercado Bitcoin, Brazil's largest cryptocurrency exchange, began at a humble ping-pong table and has now become a national crypto market benchmark. The platform's founders have been recognized as entrepreneurs who shaped the history of the cryptocurrency sector in the country, demonstrating how vision and persistence can transform a simple idea into a driver of the digital financial revolution. The trajectory of Mercado Bitcoin reflects the maturation of the Brazilian crypto ecosystem, which has grown from a niche to a multi-billion dollar market. Recognized for its innovation and security, its presence in Faria Lima symbolizes not only the company's success but also the legitimacy that cryptocurrencies have gained in the traditional financial system.

Intel Brief: Tether is making a major move in Brazil with a combined $20M bet—anchored by $10M backing for Mercado Bitcoin—while two other pressure points escalate: Brazilian police hit an illegal crypto betting ring, and a dispute over the 24-hour stablecoin hold period heats up in the country.

The rollout signals how Tether is expanding its footprint across LATAM, but it also sharpens the regulatory fight around stablecoin hold rules in Brazil. In the same news cycle, “Operation Veil of Maya” underscores the growing enforcement focus on illicit crypto activity—raising compliance stakes for exchanges, issuers, and intermediaries handling stablecoin flows.