Security alert · Coldcard hardware wallet

Move your Bitcoin off any Coldcard seed created since March 2021 — today.

A firmware bug made affected Coldcards generate seed phrases with a predictable software RNG instead of the chip's hardware RNG. Attackers have already reconstructed the private keys offline and drained roughly 1,719 BTC across three confirmed waves, without ever touching a device — and a suspected fourth wave is still being traced. Updating the firmware does not repair a seed that already exists. If your seed was generated on a Coldcard on or after March 2021, treat it as compromised: move the coins now to a new seed on patched firmware, to a different hardware wallet, or — if you need somewhere immediately — to an exchange you already use, and sort out longer-term custody after the coins are safe.

Watch for follow-on scams. Events like this draw fake “migration” and “wallet checker” sites. Coinkite will never ask for your seed words, and no legitimate tool needs them. Type coldcard.com in by hand rather than following links from social media or email.

Read Coinkite's official advisory Firmware upgrade docs
Am I affected? Version list and migration steps

The flaw cut seed randomness from the intended 128 bits to roughly 40 bits on Mk2/Mk3 and 72 bits on Mk4/Mk5/Q. Your seed is at risk if you generated it on the device while running:

  • Mk2 / Mk3 — 4.0.1 through 4.1.9
  • Mk4 / Mk5 — anything before 5.6.0 (standard) or 6.6.0X (Edge)
  • Q — anything before 1.5.0Q (standard) or 6.6.0QX (Edge)

Two exceptions. Coinkite states seeds are not at risk from this bug if you supplied at least 50 fair, independent rolls through Add Dice Rolls and those rolls were never recorded or exposed. Seeds generated before firmware 4.0.1 (March 2021) are also outside the affected range. If you are not certain which applies to you, assume you are affected and move the coins.

If a sweep is already under way. Galaxy Research reports that some fourth-wave transactions have replace-by-fee enabled. If you find an unconfirmed transaction spending from your address sitting in the mempool, you may have a short window to broadcast your own higher-fee transaction and move the coins before the attacker's confirms. Galaxy also counts at least 15 separate attackers working through the remaining vulnerable addresses, so assume the sweeping is still going on.

Migration. Update the firmware, generate a brand-new seed, verify the backup and a receive address, send a test transaction, then move the remaining funds. Keep the old backup until the migration is confirmed.

Independent tracing by Galaxy Research attributes roughly 1,719 BTC (about $111M) drained across three confirmed waves, as of Aug 7, 2026 — up from 1,596 BTC on Aug 4, when Galaxy last put the address count at about 7,300. Counting a suspected but still unconfirmed fourth wave, Galaxy puts the possible total near 2,055 BTC (~$130M) across more than 7,700 addresses. Figures were still rising at the time of writing. Bitcoin Lending Intel is not affiliated with Coinkite and this is not financial advice. Verify firmware versions and guidance against Coinkite's own advisory before acting.
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Lender review Lower risk CeFi · Native BTC Updated 16 Jul 2026

Ledn Bitcoin-backed loan review

One of the longest-running, most transparent Bitcoin lenders: tiered rates from 9.25%, a low $1,000 minimum, ring-fenced collateral that isn't lent out, and regular proof-of-reserves attestations. Here's the full picture, verified against Ledn's own terms.

By Abel Stines Independent · not affiliated with Ledn
Headline APR9.25%–11.49% (tiered)
Max initial LTV50%
Liquidation LTV~80% (alerts + auto-top-up)
Term12 months (prepay free)
Fees2% admin fee
CollateralNative BTC
CustodyCustodied, ring-fenced (no rehypo)
Minimum loan$1,000 (max $1M)

Verified against ledn.io on 9 August 2026. Rates are tiered and change; confirm your exact rate before borrowing.

Quick verdict Ledn is the strongest all-round pick for borrowers who want a regulated, transparent, native-Bitcoin lender without a high minimum. You give up the rock-bottom rates of DeFi, but you get regular proof-of-reserves attestations, collateral that isn't rehypothecated, and a clean track record through a major drawdown.
Editor's note — disclosure I'm an active Ledn customer and use the product myself. That's why I can speak to it first-hand — but it does not change Ledn's rating or placement here: every lender is scored on the same public methodology, and I have no affiliate or paid relationship with Ledn. If that ever changes, I'll disclose it here.

How Ledn's Bitcoin loan works

Ledn is a centralized (CeFi) lender operating since 2018, with over $10 billion in loan originations. You deposit native bitcoin as collateral and borrow USD, your local currency, or USDC against it — up to 50% of your collateral's value. Loans run on a 12-month term but can be prepaid at any time without penalty. There are no credit checks; your bitcoin secures the loan.

Ledn also offers B2X, a product that uses the borrowed funds to buy an equal amount of bitcoin — a leverage play that increases your exposure but also your liquidation risk. For most borrowers the standard Bitcoin-backed loan is the relevant product.

Rates & fees

Ledn uses transparent tiered pricing from about 11.49% down to 9.25% APR, with larger loans getting the lower rates. Ledn charges a 2% admin fee on the loan (and no prepayment penalty), so your real first-year cost runs roughly two points above the headline rate. The other variable is loan size, which sets your tier.

Two custody options — read this Ledn offers a Custodied loan (collateral ring-fenced, not lent out) and a Standard loan (collateral may be rehypothecated, sometimes at a lower rate). The risk profile differs significantly. Choose Custodied if avoiding rehypothecation matters to you — and confirm which one you're signing up for.

LTV & liquidation

Your maximum starting LTV is 50% — borrow $25,000 against $50,000 of bitcoin. As bitcoin falls and your LTV rises, Ledn sends early margin-call alerts and offers auto-top-up, which automatically moves spare BTC from your account into the loan to keep your LTV healthy. Liquidation sits around the 80% level. Notably, Ledn has said its early alerts and auto-top-up helped many clients avoid liquidation through a recent 32% bitcoin drawdown, though individual outcomes vary by position.

As always, the safest move is to borrow well below the 50% maximum. You can model the exact margin-call and liquidation prices with the liquidation calculator.

Custody & safety — why we rate Ledn Lower relative risk

Source: Ledn proof-of-reserves & transparency ↗

On its Custodied product, Ledn ring-fences your collateral so it cannot be lent out to third parties — eliminating the rehypothecation risk that sank several CeFi lenders in 2022. Beyond that, Ledn publishes regular proof-of-reserves attestations and a third-party Open Book report, is SOC 2 Type 2 certified, and operates through regulated entities. Combined with its since-2018 track record and zero-liquidation drawdown performance, that earns our Lower risk rating. See how we score lenders on the methodology page.

What a $25,000 Ledn loan costs

Loan amount$25,000
Collateral at 50% LTV~$50,000 BTC
Indicative APR (smaller loan)~11.49%
Approx. interest, 1 year~$2,870
Admin fee (2%)~$500

Borrow more and your rate falls toward 9.25%, lowering the effective cost per dollar borrowed. Figures are illustrative — check your live quote.

Pros & cons

Strengths

  • Low $1,000 minimum — accessible to small borrowers
  • No prepayment penalty — repay early anytime
  • Regular proof-of-reserves attestations and SOC 2 Type 2 — verify ↗
  • Custodied option: collateral not rehypothecated
  • Loans typically funded within ~24 hours
  • Strong track record since 2018

Trade-offs

  • Rates higher than DeFi (which uses tokenized BTC)
  • Best rates require larger loans
  • 2% admin fee on top of interest
  • Standard (non-custodied) option does allow rehypothecation
  • Centralized counterparty — not self-custody

Who Ledn is best for

Ledn suits borrowers who want a trustworthy, transparent native-Bitcoin loan from $1,000 and value proof-of-reserves over chasing the absolute lowest rate. If you want the most lenient liquidation buffer and zero fees, compare it with Strike; if you'd accept tokenized BTC for a ~5% rate, DeFi is cheaper. See the full Ledn vs Strike comparison.

FAQ

What is Ledn's Bitcoin loan interest rate?

Tiered from about 11.49% APR down to 9.25% for larger loans, plus a 2% admin fee on the loan.

What is the minimum loan at Ledn?

$1,000, up to a maximum of $1,000,000 — one of the more accessible minimums available.

Does Ledn lend out my Bitcoin?

Not on its Custodied loans — collateral is ring-fenced and not rehypothecated, with regular proof-of-reserves attestations. The separate Standard option does allow re-lending, so confirm which you choose.

Is Ledn safe?

It's operated since 2018, is SOC 2 Type 2 certified, publishes regular proof-of-reserves attestations, and says its safeguards helped many clients avoid liquidation through a 32% drop. We rate it lower relative risk, though no loan is risk-free.

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