Lately, people on X have been claiming that self-custody is dead (due to a failure) because of the Coldcard issue.
Here is a comparison of BTC lost via centralized services versus Coldcard (a cold wallet).
Let’s look at past events (the data):
Mt. Gox ~850,000 BTC (hack, 2014)
Celsius ~235,000 BTC (insolvency, 2022)
3AC ~175,000 BTC (fund collapse, 2022)
Genesis ~150,000 BTC (insolvency, 2023)
Bitfinex ~119,756 BTC (hack, 2016)
FTX ~100,000 BTC (fraud, 2022)
BlockFi ~77,000 BTC (insolvency, 2022)
Quadriga ~76,000 BTC (CEO's death, 2019)
Voyager ~65,000 BTC (insolvency, 2022)
Coldcard ~1,500 BTC
Coldcard accounted for 0.081% of the amount lost by exchanges.
For every bitcoin lost due to this bug, custodians lost over 1,200 BTC.
The error is avoidable: diversify, use multisig, create your own entropy, and never put your BTC on a CEX. The data speaks for itself—though, as my grandmother used to say, nobody learns from others' mistakes.
Proportionate risks are hard for people
Puts things in perspective
It’s quite clear, and those who refuse to understand the easy way will learn the hard way, because the attacks will continue!!!!
I thought FTX didn't have any Bitcoin.
Point made though. That's why the market didn't budge. Maximalists are a minority in Bitcoin.
D'accord avec toi
nice to keep in perspective.
It hits differently when it's the heart of the "most secure" ("ultra-secure"?!) self-custody Bitcoin storage
It will always be safer. Generate your seed using DICE (50+ rolls) and do NOT rely solely on the device's RNG.