The Coldcard hack is devastating. So far, around 1,370 BTC has been drained. For years, we learned that "not your keys, not your coins". It turned out that "your own keys" was not enough. Explained simply, the Coldcard hack is a firmware bug from 2021. When users create seed phrases, it is supposed to be random. That is what keeps it nearly impossible to guess for an attacker. The twist: it wasn't. The "random" 24 words were basically generated from the device clock and how fast you pressed buttons. In other words, a pattern. And patterns can be guessed. For years we thought that self-custody in a hard wallet was the safest way to keep your Bitcoin. Turns out that is only true as long as the developer has not made any shortcuts. Which, of course, is impossible for the user to know. Where am I supposed to keep my Bitcoin?
Frederik LundShare
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