More than 600 BTC worth $38 million has evaporated due to a firmware bug on a Coldcard hardware wallet, long considered a security fortress.
This incident deals a heavy blow to the “trustless” mindset of the self-custody school. When attackers can recreate private keys because of a low-quality random string generation error, many traders realize they’re essentially trading counterparty risk for hardware and supply-chain risk. The direct consequence is that large funds may shift more decisively toward spot Bitcoin ETFs or professional custody services in search of legal safety.
My view is that there is no absolutely safe solution. Self-custody of private keys requires extremely stringent technical knowledge. In a volatile market, diversifying how you store assets is essential to minimize systemic risk.
Always proactively check your devices, update manufacturer recommendations, and do thorough research (DYOR) before making any allocation decisions.
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