Bitcoin barely budged this week, hovering near $64,300 even as a security exploit drained 594 BTC — roughly $38 million — from Coldcard Mk3 hardware wallets. The hack, which targeted seeds created on firmware version 4.0.1, affected about 500 single-signature wallets. Newer Mk4, Q, and Mk5 devices aren't vulnerable, and users with BIP 39 passphrases face significantly lower risk, according to wallet maker CoinKite.
The Coldcard exploit
The vulnerability traces back to firmware 4.0.1 on the Coldcard Mk3. Seeds generated from that version onward were compromised, and some older firmware on Mk4, Mk5, and Q models also carried the flaw. CoinKite confirmed the fix and urged affected users to migrate funds. The exploit didn't touch multi-sig setups or wallets with passphrases, narrowing the blast radius.
Still, $38 million is real money. The incident adds to a growing list of hardware wallet scares, though the market's reaction was notably muted.
Why Bitcoin didn't flinch
Bitcoin briefly tested $65,300 during Asian trading before retreating back to the $64,300 range. The price ignored the negative news, absorbing it without breaking below key support levels. That resilience stands in contrast to the broader market picture.
South Korea's Kospi surged nearly 15% in July, driven by Samsung Electronics, SK Hynix, and Taiwan Semiconductor. Bitcoin didn't mirror that rally. The disconnect between traditional equities and digital assets is growing. Instead of flowing into Bitcoin, speculative capital has been chasing memecoins and tokenized assets.
South Korea's stablecoin talk
Meanwhile, South Korean officials continued discussing interim stablecoin regulations. No firm rules have landed yet, but the conversation is ongoing. The country's crypto market has historically moved independently, and the Kospi rally didn't spill over into BTC.
CoinKite hasn't disclosed whether the attacker has been identified or if any funds have been recovered. For Coldcard Mk3 users still on vulnerable firmware, the clock is ticking. The exploit is a reminder that even cold storage isn't bulletproof — and that Bitcoin's price can stay calm while the ground shifts underneath.
