White Hat hacker transferred approximately $4.5 million worth of Bitcoin from the Coldcard wallet to a restored escrow account

White Hat hacker Transferred over $4.5 million to Bitcoin Recovering a trust assisting victims of the Coldcard breach with recognition

Alex Thorn of Galaxy Digital said that White Hat hacker has transferred the Bitcoin from a stolen Coldcard-signed device to a trusted address for potential victims.

Thorn posted on X Monday that the funds were transferred by White Hat hacker in order to protect potential victims. Currently, these Bitcoin s are stored at an address controlled by the crypto Recovery Trust, a Wyoming-based agency dedicated to helping White Hat return money to victims.

The total number of Bitcoin s transferred was 52.37, valued at more than $4.5 million in current prices. Thorn added that this amount represents 2.8% of the total loss from the Coldcard breach.

The end of the breach

On July 31, criminals started stealing Bitcoin from the popular Coldcard hardware wallet stored at Coinkite.

Canada 's Coinkite explains that an firmware vulnerability in the Coldcard device caused seed phrase to revert back to a weak-strength software pseudo-random number generator when generated, instead of the hardware true random number generator, allowing hacker to effectively speculate on investors' seed phrase .

Galaxy Digital tracked the flow of funds and noted that a total of 1,789.28 attacks resulted in Bitcoin losses, or about $154.1 million at current prices.

Progress in recovering funds

Earlier this month, Nick Bax of the General Market Agreement Ump Labs said that he was involved in recovering the funds.

Bax wrote on X: I can finally say that at the end of July, I participated in about 50 rescue operations for BTC , which were about to be stolen due to a defect in Coldcard.

He added: "These funds are currently held by a Wyoming trust to ensure that they're returned to their rightful owners".

User feedback and official responses

Since the incident, cautious investors have been transferring coins to other storage schemes including exchanges.

Coinkite said in a statement that the software vulnerability had not been discovered and its potential impact was growing with each iteration of the product.

A few days after the first attack, the company urged investors to update software or move funds out of its popular hardware wallet .

This article originally appeared in Bitcoin Magazine and was written by Matthew Di Salvo.