A critical vulnerability in a major Bitcoin wallet was exploited, resulting in the theft of 594 BTC worth approximately $38 million in under 25 minutes. The speed and scale of the sweep indicate an automated exploit targeting a known flaw, raising questions about whether other wallet implementations share the same vulnerable code path and how quickly custodians identified and patched exposure.
Armada's crypto repo desk relies on Fireblocks for custody of BTC and other collateral, and this incident will be a direct question from family office and institutional counterparties assessing onboarding risk. Armada's SOC 2 positioning requires demonstrating that custody infrastructure is hardened against precisely this type of exploit. Legal counsel should confirm whether the Fireblocks MSA addresses liability in analogous scenarios, and the team should proactively communicate custody architecture differences to concerned clients.