$70M Coldcard Exploit Sparks Call for Wallet Diversification

Binance founder Changpeng Zhao has called for crypto holders to diversify their wallets after a major security failure in Coldcard hardware devices resulted in $70 million being stolen.

The exploit, which affected over 1,196 addresses, saw the attacker reconstruct private keys offline and drain funds without accessing the devices physically. The bug dated back to March 2021 and weakened the randomness used to generate recovery seeds on certain Coldcard models.

CZ suggested that holders split their funds across multiple wallets as a risk mitigation strategy, stating 'Even hardware wallets can have bugs. Even old wallets (with long history) can have bugs.' He also emphasized the importance of staying informed and secure, using the acronym SAFU.