There are some simple facts about the Coldcard Exploit that cannot be ignored. If one does not believe the official version, the following scenario(s) might be a logical consequence of the incomplete explanations we have seen so far.

1. Dice Entropy (the dice roll) has been and continues to be promoted worldwide by Coldcard itself and the entire Bitcoin community as the gold standard. The idea that this was an isolated "Korean phenomenon" falls far short of the mark and distracts from the actual, deep-seated contradictions.

2. The sudden "blow-up" of the system suggests an intent to generate maximum panic (Psy-op) and a call for regulated, government-run custodians. A rational, financially motivated hacker would have drained the keys unnoticed and in small increments over the course of years to avoid raising the alarm.

3. A government entity might have achieved a secret mathematical breakthrough that makes it possible to calculate private keys from certain public keys. The flaw in the Coldcard is merely a scapegoat intended to prevent a much larger panic...

As many users upload their xpub to third-party software (e.g., portfolio trackers, tax tools, or unsecured nodes) to monitor their wallets in "watch-only" mode. A government actor that monitors or hacks these servers would have access to a massive database of xpubs from around the world.

If intelligence agencies or companies specifically tapped into xpub databases from certain crypto service providers that were more popular in some countries (e.g., Canada or Europe) than in others (e.g., South Korea), this perfectly explains the precise geographic distribution of the victims. The attacker had the xpubs for Region X and was able to calculate the weakened keys in fractions of a second, whereas for Region Y, they would have had to search "blindly."

An xpub (or zpub for Native SegWit) contains two critical pieces of information in plain text: the master public key and the so-called chaincode. This eliminates the entire hash layer. The attacker can directly launch a mathematical attack on the elliptic curve.

If an attacker possesses a wallet’s xpub, they can simulate the mathematical structure of the entire key tree (BIP32) in memory. They no longer have to laboriously hash addresses for each attempt. They take the weak random value, apply it directly to the mathematical points of the xpub, and immediately see whether the equation works out. This speeds up the search process by a factor of one thousand to ten thousand.

Parent Key Leak: There is a known design vulnerability, firmly embedded in the Bitcoin protocol (BIP32), associated with non-hardened derivation, which nearly all software wallets use to display transactions. If an attacker possesses your xpub AND, by some chance, learns even a single private key of a subaddress (a child private key), they can immediately calculate the master private key for the entire wallet through simple subtraction. They then have immediate access to all addresses ever generated from that seed.

If a powerful actor (or an insider) wanted to undermine trust in cold storage, collecting xpubs would have been the ultimate goal. The question "Why Coldcard, of all things?" leads us straight to the heart of the psychology and power structures within the Bitcoin ecosystem. If an actor—whether state-sponsored, geopolitical, or operating from a technological dimension we do not fully comprehend—wanted to demonstrate that the axiom of entropy and the inviolability of cold storage are an illusion, it had to target the Coldcard.

It is therefore possible that it wasn't a random brute-force attack against the blockchain, but a targeted attack on the infrastructure that stores xpubs. Hence the repeated emphasis on the so-called passphrase—the 25-word phrase (Even if an exchange is hacked and your xpub is stolen, the xpub is mathematically worthless without your secret passphrase. The passphrase generates a completely new key tree that is invisible to the attacker).

There is another Anomaly: The latest on-chain analyses by TRM Labs (1) and Binance Square (2) reveal extremely bizarre behavior on the part of the attackers: In some wallets, only the most recent 200 transactions (UTXOs) were specifically drained, while older balances in the same wallet remained untouched. In some cases, the hackers left over 75 BTC in addresses derived from the same compromised seed. A purely mathematical brute-force bot would have taken everything. The fact that the attack was carried out in such an incomplete and selective manner supports the theory that the attackers were acting according to a specific, person-specific logic or filter list—or that certain funds were deliberately spared.

If the Coldcard hack was purely a blind software bug, why does the on-chain data show such an incomplete, almost selective picture of the wallets being plundered? A brute-force algorithm knows no mercy and leaves no millions untouched. Could it be that the code bug was merely a cover, and the real attacker had a precise filter list of real names and device UIDs to specifically target certain individuals while deliberately sparing others?

1. TRM Labs

https://www.trmlabs.com/resources/blog/the-largest-hardware-wallet-exploit-of-2026-inside-the-usd-116-million-coldcard-hack

1. Binance Square

https://www.binance.com/en/square/post/355394471223729

Posts on that subreddit are genuinely in confusion this week at how the price hasnt crashed. when Bitcoin’s price doesn’t move the way they expect, they assume something weird is happening. they cannot wrap their head around value if they can’t do anything with it, intrinsic like land property or machinery. many midwits on there “short circuiting“ rn that the price didn’t tank

I ordered my first Trezor devices 2 weeks before the shipping info leak. As someone who had to deal with the spam from the Ledger incident as well, I was very displeased this is happening again.

I submitted a support ticket with Trezor as I had just place a second order a few days before the leak. I hadn’t received it yet, and hadn’t opened the product. I requested a refund before the product was delivered.

It took 2-3 days but I finally got a response and they gave me a full refund and just told me to ewaste the devices.

Their handling of this incident and actually honoring the refund makes me change my view of the company from a 5/10 to a 7/10.

They will probably make some operational changes in the future to lessen the likely hood of this happening again…

I know I'm a little late but can anyone help me on how to report a loss from the bankruptcy on my tax return?

For context I’ve been in crypto since 2019…. This feeling feels all too similar. Hate has returned from all angels.
I’m not saying the bottom is in today but these are the times to be putting some extra money to work IMO