People often think a cold wallet is impossible to hack. This incident shows that’s not always true. Around $70 million worth of BTC was stolen without compromising a single hardware wallet. So what actually happened? The attacker didn’t infect devices or trick users into revealing their seed phrases. Instead, they targeted wallets that were created with weak or predictable randomness, making it possible to recreate the private keys. Once the correct key was generated, the attacker simply accessed the wallet and moved the funds. More than 1,000 BTC was reportedly drained from nearly 1,200 wallets, and the search for vulnerable wallets continued even after the initial theft. The takeaway is simple: A hardware wallet only protects the keys you generate. If the randomness used to create your seed phrase is weak, your wallet can still be vulnerable from day one. Security doesn’t start with the device; it starts with how the private keys are created.