Major Bitcoin Hardware Wallet Hack Drains Over USD 116 Million

Regulation

Senate Majority Leader Thune confirmed the Digital Asset Market Clarity Act (CLARITY Act) will not get a floor vote before the August recess, pushing the timeline to September; the bill has already cleared the House and the Senate Banking Committee. Separately, the CFTC sent warning letters to prediction-market platforms telling them to drop American-style gambling odds, reiterating that such products fall under derivatives oversight. The shifting regulatory landscape underscores why institutions need a solid digital asset compliance program before scaling operations.

Security

Coinkite’s Coldcard hardware wallet suffered a major exploit tracing back to a 2021 firmware build flaw that caused weak software-based random number generation instead of hardware entropy. More than 5,200 addresses have been affected, with roughly USD 116 million in Bitcoin stolen so far, the third-largest crypto hack of 2026, pushing this year’s total past USD 1.2 billion. Separately, BTCPay Server disclosed a critical vulnerability being actively exploited in the wild; the flaw is a reminder that access-control weaknesses in key-management systems deserve continuous scrutiny. Bybit filed suit against North Korea and the Lazarus Group over last year’s USD 1.5 billion hack and secured a preliminary injunction freezing some stolen assets. Incidents like these highlight the structural risk of relying on a single hardware device or seed backup, whereas MPC self-custody solutions built without a seed can eliminate that single point of failure by design.

Markets

Bitcoin rebounded to around USD 65,000 and Ethereum traded above USD 1,900, both posting positive month-over-month gains. Goldman Sachs CEO David Solomon said the bank is seriously considering entering Bitcoin and Ethereum markets to meet growing institutional demand. Stablecoin supply saw its biggest single drop since the Terra collapse, shedding roughly USD 15 billion, while Circle announced its Arc blockchain network will launch on public mainnet on September 16.

International

The EU’s MiCA framework has reached full implementation, becoming one of the world’s most comprehensive crypto regulatory regimes, though its strict requirements have caused some market disruption. Hong Kong is finalizing its crypto regulatory framework, with the first licensed stablecoins expected to enter circulation later this year. Singapore extended oversight to all local crypto firms, Australia solidified a two-tier licensing framework requiring a financial services license for platforms exceeding USD 10 million in annual volume, and the UAE and Dubai continued building out a unified national digital-asset framework. As global oversight tightens, institutions operating across borders need robust AML compliance in place.

About Safeheron

Safeheron is a security infrastructure provider focused on institutional-grade digital asset custody. Built on MPC (multi-party computation) technology, Safeheron gives exchanges, market makers, funds, and enterprise clients seedless, single-point-of-failure-free private key management and risk controls, helping them manage digital assets safely under a compliant framework. The team is made up of engineers with deep, long-standing expertise in cryptography and financial security, continuously tracking global regulatory and security developments to bring institutional clients specialized custody security and compliance capabilities.