Coldcard’s open-source firmware vulnerability stayed in focus on Aug. 2 after community developers said AI tools were able to surface the flaw in minutes. According to the input, a developer on Reddit used Claude Code to scan the firmware and identified the core issue within eight minutes: when generating private keys, the firmware called a software pseudo-random number generator rather than a hardware true random number generator. The same input says the flaw led to the theft of about $70 million in BTC from 1,196 wallets.
Another community user said Zhipu GLM 5.2, trained on June 16 and used offline, independently detected the same issue. The bug had been present in the open-source wallet code for more than five years, according to the report.
Small BTC transfers climb as users move funds on-chain
As the suspected Coldcard hack continued to spread through the market, small Bitcoin transfers increased sharply, reviving debate over self-custody security. CryptoQuant head of research Julio Moreno said the amount of circulating Bitcoin moved in transfers below 1 BTC rose to its highest level since November 2022, with about 39,600 BTC transferred in a single day.
That was roughly 300 BTC below the Nov. 16, 2022 record of 39,900 BTC, set days after FTX filed for bankruptcy. Moreno said users taking action to manage risk should be viewed as a positive signal.
Bloomberg senior ETF analyst Eric Balchunas said Bitcoin ETFs, with their more established regulatory framework and convenience, may offer a safer investment route for some users.
BNB Chain says former employee used old test wallet without authorization
BNB Chain said on X on Aug. 1 that the wallet address previously used in a video tutorial to generate tokens had been created by a former employee who has since left the company.
The chain said that former employee retained unauthorized access to the related mnemonic phrase after departure and used it to generate a new private key. BNB Chain said it learned that the same address was recently used independently to deploy a new meme token.
The company said it did not create, authorize, promote, or participate in the token’s issuance and has no control over the token or the wallet address. It added that the token is not affiliated with BNB Chain and has not received official recognition. BNB Chain said it has started legal proceedings against the former employee and is cooperating with relevant authorities.
DeepSeek Harness starts closed-test recruitment
On Aug. 1, DeepSeek team member Tianyi Cui announced recruitment for the closed test of DeepSeek Harness, inviting developers working on open-source projects related to Agent Harness to apply.
Applicants are required to provide a GitHub ID and representative open-source work. The move suggests DeepSeek is building infrastructure for agent evaluation and could provide a standardized testing framework for the open-source AI Agent ecosystem.
Trump Media moves another 2,628 BTC to Crypto.com
On-chain analyst EmberCN said on Aug. 2 that Trump Media, listed in the U.S. under ticker DJT, transferred 2,628 BTC to Crypto.com around six hours earlier. The report valued the transfer at about $165 million.
According to the same input, the company bought 11,542 BTC in July and August last year at an average price of $118,529, for a total of about $1.368 billion. This year, it has sold a cumulative 7,281 BTC for about $545 million at an average sale price of about $74,860, realizing a loss of $318 million.
Trump Media still holds 4,261 BTC worth about $268 million, with an unrealized loss of $237 million. Its combined paper and realized loss now exceeds $555 million, based on the figures provided.
Market comments and trading activity
Binance founder Changpeng Zhao, or CZ, said on X on Aug. 1 that the market may be in a bear phase, though large amounts of capital are still looking for places to invest.
On the same day, Lookonchain said BitMEX co-founder Arthur Hayes sold 6.16 million SYN worth about $658,000 and bought 3.05 million ENA worth about $248,000.
CZ also commented on the Coldcard incident, which the input described as a suspected vulnerability that caused more than $38 million in Bitcoin losses. He said even hardware wallets can contain flaws, including products that have been around for years. He added that splitting funds across multiple wallets may reduce some risks, but it introduces new ones, and no storage method can guarantee 100% security.
Trader Killa said on Aug. 1 that Bitcoin pulled back again after the FOMC meeting and that a key low-leverage long cluster remains below the current price. He said traders should watch the $61,000 to $61,500 support zone, adding that a break below it could open the way to the $54,000 to $56,000 area.
Public information cited in the input describes Killa as a quantitative trader focused on Bitcoin with more than 200,000 followers on X. The same input says Killa called the top of the current bull cycle in May 2025, opened a Bitcoin short near $74,688 in mid-April 2026, and turned bullish during the sharp market pullback on June 5.
