Here’s what happened in crypto today

Today in crypto, Kraken warned Coldcard’s five-year seed-generation flaw exposes a broader hardware wallet testing gap. Meanwhile, Strategy kept its STRC dividend unchanged despite shares trading below par, while Trump Media made a sizable Bitcoin transfer to Crypto.com.

Coldcard’s 5-year flaw reveals hardware wallet testing gap: Kraken

Coldcard’s five-year seed-generation flaw has exposed a broader weakness in how hardware wallets are independently tested, according to Kraken chief security officer Nick Percoco. 

In an X post on Sunday, Percoco said the incident should be a “wake-up call” for hardware-wallet makers, calling for independent testing to verify that the approved source of randomness is the one actually used by production firmware. 

“Consumers are asked to trust a manufacturer’s implementation of the single most critical function in the system, with no independent verification that the approved entropy path is the one actually executing,” said Percoco. 

His comments follow an ongoing attack that is believed to exploit weak seed phrases generated by affected Coldcard devices. As of Sunday, over 4,500 addresses have been impacted, draining nearly $90 million in Bitcoin. 

“The payments industry does not let PIN entry devices ship without independent lab testing. The US government does not accept cryptographic modules without entropy source validation. Digital asset self-custody should not be the exception,” said Percoco.  

Strategy leaves preferred STRC dividend at 12% as price still below par

While Strategy’s preferred STRC shares ended July well below their $100 par value, investors were told that their August dividend will not increase, holding at 12%.

Executive chairman Michael Saylor delivered the news in a tweet on Saturday, continuing to pitch STRC as a way to “stretch your income.” August will be the second month that the dividend will be paid semi-monthly after shareholders approved that change in June.

STRC shares closed at $89.46 on Friday, clocking a 5.42% price increase for the month which began with a dividend hike — 50 basis points to 12% — after a poor stock performance in June. The volume on the Nasdaq-traded shares on Friday were about two-thirds of their daily average. 

Saylor, however, did take to social media on Sunday to dangle the possibility that the company will be making an announcement of a change in its Bitcoin treasury holdings. “Bitcoin Drive engaged,” read his X post, following a familiar pattern of posting a chart of Strategy’s BTC buys from Saylortracker.com to start off the week.

Trump Media sells another 2,628 BTC, holdings fall to 4,261 BTC

Trump Media & Technology Group, the company behind Truth Social, sold another 2,628 Bitcoin worth about $165 million through transfers to Crypto.com.

Blockchain analytics platform Lookonchain said Trump Media bought 11,542 BTC at an average price of $118,522 before beginning to sell portions of its holdings seven months ago.

Source: Arkham

The latest transfers bring Trump Media’s total reported Bitcoin sales over the past seven months to 7,281 BTC, worth about $545 million, according to Lookonchain’s analysis, which calculated an average selling price of $74,855 per BTC. According to Arkham, the company’s remaining Bitcoin holdings stood at 4,261 BTC at publishing time, worth $269.8 million.

The transactions came amid Trump Media launching its new paid data service “Truth API,” providing faster access to Truth Social posts from President Trump. The service reportedly costs as much as $100,000 per month, giving companies a “direct, licensed, real-time feed of the platform’s most market-moving Truths.”