Coldcard Hack Sends Bitcoin Sentiment Plummeting to Historic Lows
A recent security exploit of Coldcard hardware wallets has sent shockwaves through the Bitcoin community, causing sentiment to plummet to an all-time low.
The hack, which affected nearly 1,200 self-custody wallets, resulted in an estimated $70 million loss for victims. According to Santiment data, social media chatter about Bitcoin reached its most negative depths on record, with positive commentary at its lowest level compared to negative posts since the firm began tracking sentiment.
The exploit was caused by a firmware build error present in Coldcard's version 4.0.0, which was shipped from March 1, 2021. Coinkite, the company behind Coldcard, patched the issue in release 4.21.
Binance founder Changpeng Zhao weighed in on the situation, stating that 'even hardware wallets can have bugs' and suggesting holders spread funds across several wallets, acknowledging that this approach carries its own risks.