$88M Coldcard Hack Reignites Self-Custody Debate in Bitcoin Community

Bitcoin's self-custody debate has reignited following an $88.6 million Coldcard hardware wallet exploit, with on-chain analyst Willy Woo arguing that true Bitcoin ownership can only be achieved through self-custody.

The incident has seen thousands of users migrate funds to exchanges and ETF wrappers, but Woo claims this may not provide the same level of security as self-managed keys.

Woo cited Bridgewater founder Ray Dalio's research on long-cycle stability, noting that even regulated institutions can collapse in times of economic chaos, leaving investors vulnerable to asset seizure.

Galaxy Digital's Alex Thorn flagged a likely fourth organized wave of attacks, with hundreds of BTC lifted from victim wallets in a matter of hours.