Coldcard Hardware Wallet Losses Now Estimated at $70M — Here's What Went Wrong and What It Means for Self-Custody
(62 days ago) · 1 source · Summarized by CryptoBipto
A Galaxy Digital analysis has raised the estimated Bitcoin losses linked to Coldcard hardware wallets to $70 million, significantly higher than earlier projections. The revised figure comes after deeper investigation into the scope of the vulnerability or incident affecting users of the popular cold storage device.
WHY IT MATTERS
Think of a hardware wallet like a personal safe for your Bitcoin — it's a physical device that stores your crypto offline so hackers can't reach it over the internet. Coldcard is one of the most well-known brands of these safes, trusted by many experienced Bitcoin users. This news means that a flaw or issue with Coldcard wallets has led to an estimated $70 million in Bitcoin being lost or stolen. For anyone new to crypto, this is a reminder that even the most trusted security tools aren't foolproof. It's like learning that a top-rated home safe brand had a defect that let burglars crack it open. It doesn't mean self-custody is bad, but it highlights the importance of doing your research, keeping devices updated, and considering backup security measures like multisig (requiring multiple keys to move your funds).
Read the full analysis with a CryptoBipto membership
Members can read the full analysis of every story, not just the headline.
Get startedSOURCES
- Source
RELATED
Learn the concepts behind this
Clear explanations of the subjects this article touches, with every term defined.
- How do crypto wallets and self-custody work?How crypto wallets, private keys and seed phrases work, the difference between hot, cold, hardware and custodial wallets, and what self-custody actually means.
- How do crypto scams work, and how do you avoid them?The common crypto scams and attacks explained in simple terms — phishing, rug pulls, Ponzi schemes, market manipulation — and the risks worth checking before you act.