Stacks Co-Founder Summarizes Three Lessons from the Coldcard Security Incident

Stacks co-founder Muneeb commented on the Coldcard wallet incident, summarizing lessons learned in three areas: Bitcoin storage, quantum computing threats, and ecosystem security. Regarding Bitcoin storage strategies, he noted that many industry security experts are even unaware of Coldcard, and top security research institutions may not have conducted thorough audits of its code. Muneeb believes the optimal future approach should involve asset diversification rather than concentrating all funds in a single solution, and he recommends: 1. Allocating 20%-30% of BTC to ETFs such as BlackRock’s Bitcoin ETF (IBIT) to benefit from professional custody and regulatory protection; 2. Using a multi-signature solution similar to Casa—such as a three-key setup—to distribute keys across a secure custodian, a mobile device, and a hardware wallet for 40%-50% of BTC; 3. Reserving 20%-30% of BTC for more advanced self-custody solutions that combine different hardware wallets and distinct entropy sources. Regarding quantum computing threats, Muneeb stated that once quantum computers break current cryptographic systems, Bitcoin users may experience a shock similar to “BTC suddenly being drained from cold wallets.” Quantum threats are real, and the industry must prepare in advance rather than underestimating technological progress—especially given how large language models are accelerating breakthroughs in scientific research.