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Coldcard Firmware Flaw Drains 1,367 BTC in Largest Hardware Wallet Hack, Exposing Limits of 'Don't Trust, Verify'

Jameson Lopp, co-founder of Casa, said the Coldcard exploit exposes the practical limits of Bitcoin's "don't trust, verify" mantra, noting that artificial intel…

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Coldcard Firmware Flaw Drains 1,367 BTC in Largest Hardware Wallet Hack, Exposing Limits of 'Don't Trust, Verify'
Article image: Coldcard Firmware Flaw Drains 1,367 BTC in Largest Hardware Wallet Hack, Exposing Limits of 'Don't Trust, Verify'

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Excerpts from the article

  • Jameson Lopp, co-founder of Casa, said the Coldcard exploit exposes the practical limits of Bitcoin's "don't trust, verify" mantra, noting that…
  • The breach, traced to a firmware integration error present since March 2021, represents the largest confirmed hardware wallet hack in Bitcoin…
  • Block's Bitcoin Engineering and Security teams identified the root cause in Coldcard's libngu library. Coinkite had set the board configuration…

The incident reinforces a structural lesson: the security guarantee of any self-custody arrangement rests entirely on the entropy quality of its seed generation, and a single misconfigured preprocessor macro can silently collapse that guarantee for years without triggering any observable alarm. As AI accelerates both vulnerability discovery and defensive auditing, the practical burden of verification shifts further beyond what individual users can reasonably perform. Will the industry converge on multisignature architectures and AI-augmented audit standards as the new baseline for self-custody, or will the next entropy failure arrive before those defenses mature?

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