Blockchain monitoring firms now put losses from the Coldcard hardware wallet exploit above $130 million, with Galaxy Research suggesting at least a dozen separate actors are working the same flaw rather than one coordinated group. The root cause traces to a March 2021 firmware build that routed seed generation through a software pseudorandom generator instead of the device's hardware RNG, letting attackers reconstruct keys offline without ever touching the wallet. Coinkite shipped emergency firmware on July 31, but patching does not repair a seed that was already generated weakly.