Coinkite has confirmed that it will change how it handles customers’ data “in connection with the security incident disclosed on July 30, 2026.” The change in the Coldcard Wallet’s maker standard practice is part of what it described as preparation for “legal obligations” stemming from the theft. Coinkite’s data retention policy overhaul follows one of the year’s worst security incidents, which exploited the firmware version 4.0.1 that the company shipped in March 2021. As TRM Labs warned, reflecting the seriousness of the security vulnerability, installing the fixed firmware only protects future wallets. In response, a group calling itself the Red Team, led by AnchorWatch CEO Rob Hamilton, has begun AI-assisted audits of Bitcoin wallets and libraries, scanning 150 repositories so far.