The Coldcard situation, explained in under 60 seconds Coldcard is a hardware wallet, a small physical device people use to store Bitcoin offline, away from the internet.   When you set one up, it generates a seed phrase, 12 to 24 ordinary words that act as the master key to your wallet. Every private key it ever uses comes from that phrase. Whoever holds it, holds the coins.   For a seed phrase to be safe, it needs entropy, genuine, unpredictable randomness. High entropy means there's no pattern an outsider could guess or reproduce.   A 2021 firmware bug meant some Coldcard Mk3 devices generated that seed phrase using software-based randomness instead of true hardware randomness, and that randomness had far less entropy than it should. Lower entropy means more predictable. Attackers could work out likely seed phrases offline, check them against known Bitcoin addresses, and sweep the funds when they matched.   Worth noting: longer seed phrases carry more entropy by design, which is exactly why 24-word phrases are considered safer than 12-word ones.   Important distinction: Bitcoin wasn't hacked. Every stolen transaction was validly signed with a real key. The flaw was in one manufacturer's device, a layer built on top of Bitcoin, not the protocol itself. #bitcoin #crypto #security @BTCMarkets