Bitcoin Hardware Wallet Maker Destroys Some Inventory After More Than $88 Million Stolen

Summary

Hardware cryptocurrency wallet manufacturer Coincard confirmed that it is destroying some inventory following a security incident in which more than $88 million in cryptocurrency was stolen from affected wallets. The company determined that hardware produced during a specific manufacturing window contained a vulnerability.

Details

This incident follows the separate Coldcard PRNG seed-generation flaw that led to $70 million in theft (reported 1 August 2026), underscoring the growing scrutiny of hardware wallet security. Coincard's response — destroying affected inventory rather than attempting to patch shipped devices — represents an extraordinary step that signals the severity of the underlying hardware vulnerability. The incidents collectively raise questions about the security of Hardware Security Modules and supply chain integrity in the cryptocurrency hardware sector.

Sources

• The Record
• raw/digests/Cyber-Digest-2026-08-05