In brief
CZ warned on X that even hardware wallets and long-established wallets can have bugs, suggesting holders split their funds across several wallets to mitigate risk while noting no setup is fully foolproof.
The warning follows a Coldcard exploit stemming from a March 2021 firmware build error that drew seeds from a software fallback instead of the hardware generator, making private keys far easier to guess.
Galaxy Research, mapping the fund flows from a pattern identified by Block engineers, now pegs losses at about 1,082.65 BTC (~$70.2 million) across 1,196 addresses—nearly double the original $38 million estimate.
Binance founder Changpeng "CZ" Zhao is warning crypto owners not to place blind faith in hardware wallets, following an exploit that drained tens of millions of dollars in Bitcoin from Coldcard devices.In a Saturday post on X, Zhao cautioned that even hardware wallets can carry bugs, and that older wallets with long histories are not immune. “Nothing is 100%,” he posted.He suggested holders consider spreading their funds across several wallets as one way to reduce exposure, while acknowledging the approach carries its own trade-offs and that no setup is entirely foolproof. CZ closed with his familiar refrain urging users to stay informed and keep their funds safe: “Stay SAFU!”His comments followed the discovery of a flaw in Coldcard devices made by manufacturer Coinkite. As Decrypt reported, a build error caused seeds on affected units to be drawn from a software fallback rather than the device's hardware random-number generator, leaving the private keys far easier to guess than intended. The problem traced back to firmware shipped in March 2021, and updating the firmware does not fix a seed already created on a compromised device.
