Coldcard Flaw Triggers $200M Inflow to River's Custody Services

River, a Bitcoin financial services firm, experienced a significant influx of funds after a vulnerability was disclosed in Coldcard hardware wallets. The company reported an inflow of 3,679 BTC, worth over $200 million at current prices, on the same day the issue became public.

The Coldcard vulnerability could potentially expose private keys under specific conditions, prompting users to reevaluate their custody options. In response, some users moved funds to River's custody services, which offer institutional-grade security and regulatory oversight.

This shift highlights the ongoing tension between self-custody and managed custody in the Bitcoin ecosystem. While hardware wallets like Coldcard provide users with full control over their private keys, vulnerabilities can undermine confidence and lead users to seek alternative solutions.