CoinDesk·4 min read·medium

Coldcard's $38 million (so far) exploit shakes faith in self-custody, may push investors to ETFs

K
Krisztian Sandor
Coldcard's $38 million (so far) exploit shakes faith in self-custody, may push investors to ETFs
AI Summary

A significant security flaw in Coldcard hardware wallets has allowed attackers to recreate recovery phrases, leading to $38 million in losses. The incident has sparked a debate about the risks of self-custody versus the safety of regulated financial products like Bitcoin ETFs.

Long among Bitcoin's biggest selling points has been that investors don't need to trust banks and exchanges to safeguard their money.

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