A Coldcard exploit drained $70 million, prompting Binance founder CZ to call for wallet diversification.
The attacker exploited a March 2021 firmware flaw, reconstructing private keys to drain 1,082.65 BTC from 1,196 addresses in 41 minutes. This wasn't a physical breach; it was a bug in seed generation.
Our take: Even long-standing hardware wallets aren't immune. If a device like Coldcard can harbor a bug for years, the "self-custody is perfect" narrative needs to shift. Self-custody still has risks.
Would you split your funds across multiple hardware wallets if it means more complex key management? $BTC
The attacker exploited a March 2021 firmware flaw, reconstructing private keys to drain 1,082.65 BTC from 1,196 addresses in 41 minutes. This wasn't a physical breach; it was a bug in seed generation.
Our take: Even long-standing hardware wallets aren't immune. If a device like Coldcard can harbor a bug for years, the "self-custody is perfect" narrative needs to shift. Self-custody still has risks.
Would you split your funds across multiple hardware wallets if it means more complex key management? $BTC