Attackers exploited a firmware flaw in Coldcard hardware wallets, draining 1,128.6633 Bitcoin from over 1,100 user wallets on July 30. The coordinated operation represents more than $71 million at current prices. Coinkite, Coldcard's manufacturer, released patched firmware after the attack became public—but the stolen funds are gone.
The flaw had persisted undetected long enough for attackers to develop a precise exploitation method. That timeline raises direct questions about the depth of Coldcard's security audit process and shatters the assumption that hardware wallets are impenetrable cold storage.
Bitcoin traded at $62,962, up 0.5 percent over 24 hours. The asset briefly cleared $65,000 a day earlier before sellers regained control at the August calendar flip.
Spot Bitcoin ETFs recorded $265 million in net redemptions on July 31, led by BlackRock's IBIT. That is institutional money voting with its feet during a week of compounding bad news.
The pressure does not stop there. The Bitcoin network faces a miner vote on BIP-110 near block 961,632. If miners signal adoption, the proposal could trigger a contentious hard fork—splitting the network and introducing protocol instability at the worst possible moment.
A second fork, eCash, is scheduled for Aug. 21. eCash is a distinct project targeting specific scalability concerns, but two network splits in the same month sharpens holder anxiety regardless of technical merit.
The Crypto Fear & Greed Index sits at 27—deep in "Fear" territory. The Coldcard exploit, ETF outflows and back-to-back forks are hitting simultaneously, and risk appetite across Bitcoin and major altcoins has contracted accordingly.
Watch miner signaling on BIP-110 and execution of the eCash fork on Aug. 21. Those are the next hard data points that will move this market.
