An insight into Bitcoin’s safety: Coldcard firmware vulnerability exposed; $112 million in Bitcoin Stolen

As BTC, ETH, and XRP face heightened volatility, EX DeFi is attracting attention with a cloud mining model focused on long-term digital asset participation.

The cryptocurrency market has recently been rocked by another shocking security incident. Attackers exploited a vulnerability in the firmware of Coldcard hardware wallets to drain funds from numerous Bitcoin addresses, sparking widespread concern regarding the security of hardware wallets and the risks associated with self-custody of digital assets. Public investigations indicate that the scale of the theft linked to this vulnerability has already reached hundreds of millions of dollars, with the total loss still being tallied.

The incident began on July 30, 2026. Galaxy Research discovered that attackers transferred approximately 1,083 BTC from over 1,000 addresses in just 41 minutes, followed by subsequent waves of fund transfers. As investigations progressed through mid-August 2026, the number of confirmed affected addresses and the volume of stolen BTC continued to rise.

What makes this incident unique is that the issue did not stem from the Bitcoin blockchain itself; rather, it was linked to the random number generation mechanism used by certain Coldcard firmware versions when creating wallet seed phrases. This vulnerability rendered the seeds generated by some wallets predictable, thereby increasing the risk that private keys could be derived and funds stolen.

This has prompted many investors to reconsider a fundamental question: Is Bitcoin itself still safe?

In reality, this incident highlights security risks inherent in cryptocurrency storage tools and private key management, rather than a compromise of the Bitcoin network itself. For investors, selecting a secure and reliable method of asset management has become an increasingly critical aspect of digital asset investment.

As market panic intensified, the prices of major cryptocurrencies such as BTC, ETH, and XRP experienced significant volatility. Many investors began to wonder: beyond simply waiting for price appreciation, are there more efficient and sustainable ways to participate in Bitcoin’s long-term value growth?

Against this backdrop, a growing number of investors are turning their attention to EX DeFi — a platform offering stable returns by combining cloud mining with renewable energy. It allows investors to hedge against short-term market risks while focusing on Bitcoin’s long-term value and exploring more diversified ways to engage with digital assets.

A Firmware Flaw Dating Back to 2021

The root cause of this incident can be traced back to a firmware update released by Coinkite in 2021. The relevant update introduced a flaw in the random number generation process used for creating mnemonic phrases. Mnemonic phrases are a crucial component in generating master keys for hardware wallets; if randomness is insufficient, attackers can narrow down the range of potential seeds through calculation and analysis, thereby increasing the likelihood of recovering the associated private keys.

According to research organizations such as Galaxy Research, this issue had previously been reported to Coinkite by researchers. This large-scale attack indicates that some wallet seeds generated in the past may have been at risk for an extended period.

Public reports suggest that the specific range of affected Coldcard devices and firmware versions requires further confirmation via Coinkite’s official security announcements. Notably, simply updating the firmware does not fix wallet seeds that were already generated using the affected firmware; users must migrate their assets in accordance with the manufacturer’s security recommendations.

EX DeFi cloud mining: A new option for Bitcoin investors

Amidst heightened market volatility, an increasing number of digital asset investors are turning their attention to EX DeFi, seeking to explore diversified yield-generation models through methods such as cloud mining and yield aggregation.

For Bitcoin holders, EX DeFi offers a relatively straightforward way to participate in the digital asset ecosystem compared to high-volatility investment methods like futures trading. Users can access Bitcoin mining services without the need to deploy mining hardware or bear costs associated with equipment maintenance, allowing them to capitalize on Bitcoin’s long-term value while maximizing the utility of their digital assets.

Why is EX DeFi attracting increasing attention?

Amidst frequent security incidents involving digital assets, investors are paying greater attention to asset storage, platform security, and risk management.

1. Security and Stability

EX DeFi employs a multi-layered security architecture, integrating technologies from McAfee and Cloudflare alongside measures like offline cold wallets to provide comprehensive protection for platform operations and user assets.

2. Eco-friendly and Efficient

The platform’s mining operations utilize renewable energy sources — such as solar, wind, and hydroelectric power — aiming to minimize the environmental impact of energy consumption while maximizing computational efficiency.

3. Compliance and Transparency

The platform continuously improves its operational standards, data transparency, and user protection mechanisms, offering a clearer and more reliable environment for cryptocurrency services.

4. Smart Custody

EX DeFi handles daily operations, computing power management, and earnings settlement through a professional team and automated systems, allowing users to easily earn passive income.

5. Multi-currency Support

The platform supports a wide range of mainstream digital assets — including BTC, ETH, DOGE, SOL, XRP, USDC, LTC, and USDT — offering greater flexibility to diverse users.

6. Affiliate Rewards

The platform offers an affiliate program where users can earn referral commissions of 3% + 2% (up to a maximum of $50,000 in rewards) by inviting friends, making it easy to boost passive income even without making an investment themselves.

How do I use EX DeFi?

1. Sign Up

Visit the EX DeFi platform to create an account and receive a $17 reward upon completing registration

2. Select a Plan

Deposit Bitcoin or other supported digital assets, then choose a suitable mining plan based on budget and the contract term.

3. Earn Mining Returns

Once the contract begins, the system automatically contributes computing power to the mining pool; earnings are settled and credited to an account automatically within 24 hours. Upon contract expiration, the principal is automatically returned.

Examples of common contracts

BTC (Beginner Trial Contract): Investment: $100 | Term: 2 days | Daily Return: $4 | Total Profit: $100 + $8

DOGE (Golden Shell Mini Dogecoin Pro): Investment: $500 | Term: 6 days | Daily Return: $6.5 | Total Profit: $500 + $39

BTC (Canaan-Avalon-A1466): Investment: $1,000 | Term: 10 days | Daily Return: $13.4 | Total Profit: $1,000 + $134

LTC (Bitmain Antminer L7): Investment: $5,000 | Term: 20 days | Daily Return: $73.5 | Total Profit: $5,000 + $1,470

BTC (Bitmain S19K-Pro): Investment: $10,000 | Term: 30 days | Daily Return: $161 | Total Profit: $10,000 + $4,830

For more contract details, visit the EX DeFi website.

Summary

The Coldcard incident serves as a reminder to the market that the security of the Bitcoin blockchain and the security of digital asset storage tools are distinct issues. This incident did not involve a breach of the Bitcoin network itself; rather, it exposed the severe consequences that can arise from firmware vulnerabilities in specific hardware wallets, prompting investors to place greater importance on issues such as private key generation, asset custody, and platform security.

For long-term BTC investors, beyond monitoring price trends and market cycles, it is equally important to consider how to mitigate risks associated with relying on a single storage method and to explore more diversified approaches to digital asset management. EX DeFi aims to provide users with an alternative way to participate in the digital asset ecosystem through methods such as cloud mining, hash rate management, and renewable energy.

For more details, visit the official EX DeFi website.