August 3, 2026
Users of the Bitcoin self-custody wallet Coldcard suffered losses in recent days as hacker groups discovered and exploited a vulnerability in the wallet’s software.¹ Estimates suggest hackers have so far drained ~1,400 BTC (~$90mn) from user wallets. The incident is an unfortunate setback for Bitcoin self-custody, which is critical to the healthy functioning of the Bitcoin network in the longer-term, in our view.
However, there are several mitigating factors investors should keep in mind:
Key Takeaway: Recent security incidents are an unfortunate setback for Bitcoin self-custody, but they did not affect a) the blockchain itself, or b) any BTC held in commingled vehicles (such as ETPs and ETFs). Cybersecurity losses have also trended lower over time, and other robust custody options are available for investors.
Exhibit 1: Crypto cybersecurity losses are in long-term decline
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