A critical flaw in the Bitcoin Core v30 wallet migration process could lead to permanent fund loss for users with older wallets.
Quick Summary – TLDR:
- A wallet migration bug in Bitcoin Core v30.0 and v30.1 can delete files and cause irreversible fund loss.
- Only users migrating legacy wallet setups with pruning and custom directories are affected.
- Bitcoin Core developers pulled the affected versions and are working on a fix in v30.2.
- Users are strongly advised to back up wallets and avoid migration attempts until the new release.
What Happened?
A serious bug in Bitcoin Core versions 30.0 and 30.1 has put users of legacy wallets at risk of losing access to their funds. The issue occurs during wallet migrations and was discovered after developers found that under certain conditions, the migration process could delete critical wallet files.
The affected software versions have since been pulled from the official download site, and users have been told not to use the wallet migration feature until a patched version, Bitcoin Core v30.2, is released.
NOTICE: Wallet Migration bug present in Bitcoin Core wallet 30.0 & 30.1.
— Bitcoin Core Project (@bitcoincoreorg) January 5, 2026
Under rare circumstances, migrating a legacy (BDB) wallet can delete all wallet files on the same node. If those wallets aren’t backed up, this can result in a loss of funds.
A fix will become available in…
Bitcoin Core Bug Could Wipe Out Legacy Wallets
The vulnerability lies in how Bitcoin Core handles the migration of unnamed legacy wallets, typically stored in a file called wallet.dat. If these wallets are located in custom directories defined by the -walletdir setting and the user has enabled pruning (a space-saving feature), the migration process can mistakenly delete the entire wallet directory.
This bug does not affect the blockchain itself or the network as a whole. However, if users have not created external backups, their funds may be lost permanently, as the local files are completely removed.
Lacie Zhang, market analyst at Bitget Wallet, explained that the risk is highest when all the following conditions are met:
- The wallet is a legacy format and has not been renamed.
- The user has pruning enabled.
- The wallet directory is custom or mounted.
- A migration attempt has already occurred or is pending.
If any of these apply, users are urged to immediately back up their entire data directory and wait for version 30.2 before making any changes.
Developers Respond, Pull Downloads, and Warn Users
Once the issue was confirmed, developers moved swiftly to remove both v30.0 and v30.1 binaries from distribution. They also released a blog post warning users and advising extreme caution.
Shawn Odonaghue from Orbs noted the bug mainly affects very old wallet setups, saying most users with hardware or modern wallets should be safe. Still, the broader implication has raised concerns about concentration risk, as Bitcoin Core powers approximately 78 percent of all reachable Bitcoin nodes, according to Coin Dance.
Odonaghue said:
Backward Compatibility Issues Spark Developer Tensions
The bug also reopened discussions around backward compatibility and the risks associated with software updates. Despite being reviewed for weeks and heavily debated among developers, Bitcoin Core v30 still shipped with a fund-threatening flaw, highlighting the unpredictability of changes in legacy systems.
Bitcoin Knots, an alternative fork maintained by Luke Dashjr, has been vocal about enforcing stricter rules that might have prevented such issues. Knots users were quick to point out that their software’s strict OP_RETURN filter offers a more cautious approach compared to Core’s broader permissions.
While not consensus-critical or a threat to the blockchain’s integrity, the bug serves as a reminder that even non-network-level issues can have wide-reaching consequences when a single software dominates the ecosystem.
SQ Magazine Takeaway
Honestly, this one stings a little. As someone who’s used Bitcoin Core for years, it’s a bit shocking to see such a critical bug slip through in a major release. The idea that a simple wallet migration could wipe out someone’s entire Bitcoin stash, especially if it’s from the early days, is a nightmare. What makes it worse is how preventable this could have been with just a bit more caution around legacy support. It’s a strong reminder to always back up, double-check version changes, and maybe even consider alternatives if your setup is old. Sometimes in crypto, being cautious isn’t optional, it’s survival.
