sure, but a flaw doesn't make something custodial. holding one asset (L-BTC) while someone else (the Liquid Federation) holds the BTC makes it custodial.

same for ecash: doesn't matter if there is a vulnerability in a mint's implementation or not: it's custodial because mint users hold ecash tokens and the mint operator holds the bitcoin.

with coldcard, the users held their own bitcoin...until someone stole it from them. If you get bitcoin stolen from you because someone finds your seed phrase backup, it doesn't mean you were in a custodial situation -- it means you were the victim of theft.

Scoresby

but it did have the flaw, just like liquid doesn't have unilateral exit, we have to deal with what is, not what we want it to be!