The hack of Coldcard hardware wallet last week dealt a severe blow to the Bitcoin industry, with over 1,300 bitcoins stolen and estimates reaching as high as 2,000. More than 11,000 bitcoins were moved to custodial exchanges. The attack exploited a firmware flaw that generated predictable private keys due to insufficient entropy during key creation. Coinkite’s founder NVK had built his reputation on security. Despite this setback, many industry players defend self-custody as essential to Bitcoin’s integrity, citing Satoshi Nakamoto’s white paper and the advantages of multi-signature solutions to resist state seizures similar to the 1933 Executive Order 6102.
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