Coldcard Attack Investigation Hits AI Limits, Team Uses Chinese Models

Galaxy Research head Alex Thorn notes US AI restrictions force reliance on Chinese open-source models for tracing stolen bitcoin from Coldcard wallets.

Woofun AI reports that Galaxy Research head Alex Thorn confirmed ongoing attacks against Coldcard-generated addresses, warning that single-signature wallets created after the March 2021 firmware upgrade face total drainage risk. Thorn highlighted that US large language models restrict on-chain tracing capabilities, compelling the team to utilize Chinese open-source AI models to track stolen bitcoin. He described this limitation as "unbelievable" and intends to raise the issue at government and industry levels. While much of the stolen bitcoin remains dormant, new attackers are laundering funds via peeling chains, ThorChain, and offshore gambling platforms. The team continues monitoring addresses and has shared data with US agencies, urging the bitcoin community to enhance self-custody security education.