White hats outrun Coldcard hackers in 52-Bitcoin evacuation
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
White hat hackers have transferred 52.37 Bitcoin rescued from wallets vulnerable to a Coldcard security flaw to the Wyoming-based Crypto Recovery Trust. This transfer aims to return the funds to victims. About 40% of the Bitcoin linked to the second wave of affected wallets was secured by white hats, who acted to protect victims’ funds from imminent theft.
Why it matters
The transfer protects victims' funds from being stolen by malicious actors exploiting the Coldcard vulnerability. This intervention by white hats and the creation of a recovery trust provide a mechanism for victims to potentially reclaim their Bitcoin.
Key context
A Coldcard entropy flaw exposed wallets to theft, with a total of approximately 1,830 BTC across 9,162 addresses affected. White hats began intervening to secure the funds as they became vulnerable. Security researcher Nick Bax noted helping rescue about 50 Bitcoin when the threat to the funds was imminent.
Key numbers and entities
52.37 BTC were transferred to Crypto Recovery Trust, which is Wyoming-based. Alex Thorn, head of research at Galaxy Digital, provided key information and commentary. A total of 1,830 BTC across 9,162 addresses were linked to the Coldcard vulnerability. About 3.0134 BTC came from previously untracked addresses.
What remains unclear
The exact origin and full scope of all rescued funds, including those from untracked addresses, cannot be confirmed by Galaxy Digital. Alex Thorn did not immediately respond to requests for further comment. Details on the full process for victims to recover their funds through the Crypto Recovery Trust are not elaborated.