Video Description
“They’re saving all their money in Bitcoin and they’re doing all the right things. They’re self-custodying it. And then overnight, it’s just gone.”
Frostsnap’s Lloyd Fournier and Nick Farrow join me to break down the catastrophic Coldcard vulnerability that made supposedly secure Bitcoin keys guessable and allowed attackers to drain more than 1,700 BTC without ever touching the devices.
We discuss how a five-year failure in Coldcard’s randomness generation went undetected, why every safeguard failed and the role AI played in discovering and exploiting the bug. Nick also explains how he reproduced the attack himself, what the on-chain evidence reveals about the attackers and why this has shaken trust in Bitcoin self-custody.
We also get into whether hardware wallets are really trusted...
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