Coldcard’s 5-year flaw reveals hardware wallet testing gap: Kraken’s security chief
The five-year bug escaped detection because auditors verified that the intended random number generator existed, but not that it was being called.
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The five-year bug escaped detection because auditors verified that the intended random number generator existed, but not that it was being called.
Stablecoins have been flowing out of South Korean exchanges for 18 consecutive months as regulators weigh tighter oversight of cross-border crypto activity.
Galaxy research head Alex Thorn warned that unconfirmed transactions may give some Coldcard users a narrow opportunity to save their funds.
Morgan Stanley’s E*TRADE has launched spot cryptocurrency trading for eligible retail clients, allowing them to trade Bitcoin, Ether, and Solana through a partnership with Zero Hash, with custody services planned to move to Morgan Stanley Digital Trust. The US Senate unanimously adopted a nonbinding resolution opposing executive clemency for former FTX CEO Sam Bankman-Fried following his fraud conviction. Meanwhile, President Donald Trump is scheduled to meet with senators to discuss the CLARITY Act, a crypto market structure bill that lawmakers aim to advance before the Senate's August recess.
The Senate is going on its summer break in a week, leaving next to no time left to sort out its remaining priorities in August. And obviously, the fate of Clarity is one of those priorities.
Revenue fell from $80 million to $20 million in the bear market. OTC lending at $260 million outstanding is the fastest-growing line, targeting $1 billion by year-end.
Alex Fine said standalone crypto payment rails are becoming obsolete as platforms shift toward unified funding flows that abstract away blockchain complexity for users.
Strategy’s preferred STRC shares ended July below their $100 par value, and the August dividend will remain at 12%, with no increase from July, which had already seen a dividend hike to 12% after a poor performance in June. The shares closed at $89.46 on Friday, up 5.42% for the month, and continued to trade significantly below par. Strategy’s executive chairman, Michael Saylor, indicated that management’s goal is for STRC to trade at $99-$100 over time, but did not specify when this might happen. The company has built a cash reserve of $3.75 billion to support preferred dividends and has been repurchasing its preferred shares at a discount while they remain below $100.
Crypto exchanges built perpetual futures for digital assets. Now they are using them to offer 24/7 exposure to stocks, commodities and indexes.
The Coldcard vulnerability has smaller bitcoin holders moving funds onto exchanges for safety, according to blockchain analytics firms. This is opposite of the trend seen following the FTX collapse in late 2022.
BNB Chain announced it is pursuing legal action after a former employee allegedly used unauthorized access to a wallet created for a tutorial to launch a memecoin called Asteroid Shiba (ASTEROID), which the company did not endorse. Lookonchain reported that the individual deployed the token using four wallets, acquiring a significant portion of the supply and later selling most of the tokens for approximately $638,000 in BNB. BNB Chain clarified that it did not create, approve, or control the token or the wallet involved. Binance founder Changpeng “CZ” Zhao characterized the ex-employee as "basically a scammer" and warned users to remain cautious.
Trump Media & Technology Group has sold an additional 2,628 Bitcoin, reducing its holdings to 4,261 BTC, according to blockchain analytics platform Lookonchain. Over the past seven months, the company has sold a total of 7,281 BTC worth about $545 million, having purchased 11,542 BTC at an average price of $118,522. The latest transactions include transfers to Crypto.com, with recent transfers recorded on May 22 and additional movements including one of 2,429 BTC and another of 198.9 BTC. These sales occur amid broader scrutiny of Trump-linked crypto ventures and ongoing legislative discussions surrounding the Digital Asset Market Clarity (CLARITY) Act.
The suspected Coldcard hack has led to a surge in small Bitcoin transfers, reaching 39,600 BTC in a day, the highest since November 2022, according to CryptoQuant. The ongoing incident has resulted in estimated losses of about 1,367 BTC ($88.6 million) across 4,585 addresses, with researchers identifying new victims and urging affected users to move their funds. The event has reignited debates over the safety of Bitcoin self-custody, with some experts arguing that self-custody has a built-in reaction time and that most Bitcoin remains protected. Meanwhile, others compare the risks of self-custody with the safety and convenience offered by Bitcoin ETFs, suggesting the incident reflects issues with a specific wallet provider rather than self-custody as a whole.
Customarily, Michael Saylor and team have lifted the STRC dividend when it trades sizably below par, but not this month.
The legal developments in cryptocurrency this week include a motion filed by Michelle Bond, wife of former FTX executive Ryan Salame, to exclude evidence related to Salame’s guilty plea, arguing it has minimal probative value and could cause unfair prejudice. A separate case involves George Santos, a former Congressman, who was ordered by the CFTC to pay over $35,000 for trading prediction market contracts on Kalshi based on material misrepresentations about his whereabouts, and he is barred from trading on prediction markets for three years. Additionally, US soldier Gannon Ken Van Dyke faces charges for allegedly using insider information in betting on Polymarket during a military operation involving Venezuela’s President Maduro; his legal team has filed a motion to dismiss parts of the indictment, citing ambiguity in the legal classification of event contracts. These cases highlight ongoing legal proceedings related to crypto and prediction markets, with potential implications for regulation and enforcement.
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.
Minnesota's law banning virtual currency kiosks took effect on Saturday, following the signing of bill SF 3868 by Governor Tim Walz in May. The law prohibits all crypto ATM operators from installing, operating, maintaining, or making accessible any virtual currency kiosks in the state, requiring existing machines to be deactivated by Saturday and removed by December 31. Officials reported that residents, predominantly senior citizens, lost approximately $1 million to crypto scam schemes associated with these kiosks from 2023 to 2025, with the FBI’s Internet Crime Complaint Center reporting over $151 million in losses related to digital assets in 2025. The measures are part of broader efforts in the US to address fraud related to digital assets and crypto kiosks.
Without that QQQ token, QQQB, July volume for tokenized equities would be roughly $2.03 billion, about 30% below June’s total.
A mystery-shopping experiment found that exchange fees, foreign exchange spreads and banking rails mean stablecoin remittances are often no cheaper than traditional transfer means.
Difficulty falls as weak mining economics reduce capacity, while forward markets signal little relief through year-end.
An affiliate of the Protect Progress PAC, funded largely by contributions from Ripple Labs and Coinbase, has spent over $2 million on ads supporting Michigan Representative Shri Thanedar in the state's 13th congressional district primary race. The PAC's spending, which includes approximately $884,240 to support Thanedar and more than $150,000 to oppose his Democratic challenger Donavan McKinney, has effectively doubled in the past week, according to FEC filings. Thanedar has previously supported crypto-related legislation, including the GENIUS Act and the CLARITY Act, and co-sponsored the Promoting Innovation in Blockchain Development Act. The PAC's spending is part of a broader effort by Fairshake and its affiliates to influence election outcomes in favor of crypto industry-aligned policies, with reports indicating they have spent over $82 million from the roughly $189 million spent by crypto companies in the 2026 election cycle.
CME argues that because bitcoin is a commodity, options tied to its value fall under CFTC jurisdiction, not the SEC's authority.
Michael Coates, the foundation’s new CISO, said that AI vulnerabilities and fake identities will drive the next wave of blockchain security concerns.
Crypto is said to be growing up to look like Wall Street. The evidence in its biggest market points the other way, argues Bitget CEO Gracy Chen.