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The Self-Custody Dilemma: The $38M Coldcard Hack and What It Means for YouBitcoin’s original promise was always simple and revolutionary: "be your own bank". By controlling your own private keys through a hardware wallet, you eliminate the need to trust banks or exchanges. However, the recent case involving Coldcard — one of the most respected brands on the market — brought up an uncomfortable question: what if the problem is actually in the very device that should be protecting you? A critical software flaw in the wallet randomness generation allowed attackers to recreate recovery phrases (seeds) and drain nearly 600 bitcoins (about US$ 38 million) from users who believed they were 100% safe.

The Self-Custody Dilemma: The $38M Coldcard Hack and What It Means for You

Bitcoin’s original promise was always simple and revolutionary: "be your own bank". By controlling your own private keys through a hardware wallet, you eliminate the need to trust banks or exchanges. However, the recent case involving Coldcard — one of the most respected brands on the market — brought up an uncomfortable question: what if the problem is actually in the very device that should be protecting you?
A critical software flaw in the wallet randomness generation allowed attackers to recreate recovery phrases (seeds) and drain nearly 600 bitcoins (about US$ 38 million) from users who believed they were 100% safe.
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