‘Nothing Is 100%,’ Binances CZ Reacts as $70 Million Coldcard Exploit Stirs Panic

Abstract:After a reported $70 million exploit involving Coldcard hardware wallets drained up to 594 BTC in under 30 minutes, Binance co-founder Changpeng Zhao warned that no crypto wallet is completely safe. Even established hardware wallets with long track records can contain bugs, he said, urging users to avoid keeping all funds in a single wallet. CZ suggested spreading holdings across multiple wallets to reduce the impact of any one exploit, while acknowledging that this approach also carries its own risks. The incident has shaken confidence in hardware wallets, long considered among the safest ways to store crypto assets.

  • No Crypto Wallet Is Safe?
  • Binances CZ Issues Safety Warnings

The recent fraudulent attack that affected Bitcoin holders in a massive $70 million exploit involving the crypto hardware wallet Coldcard has sent shivers through the crypto community, stirring a wave of panic that has shaken investors confidence.

Following the news of the attack, in which up to 594 BTC was drained from holders‘ wallets in less than 30 minutes, Binance’s co-founder Changpeng Zhao has sent a message encouraging crypto users to be more vigilant.

No Crypto Wallet Is Safe?

The incident, which has sparked reactions across the crypto ecosystem and stirred discussion about the reliability of self-custody platforms, has also triggered a response from CZ, who issued a few safety measures.

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In his statement, Binances CZ reminded users that no crypto platform is completely immune to security flaws, regardless of its reputation or track record.

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He explicitly referred to hardware wallets and even older crypto wallets with a long history, noting that either of them can have bugs.

Binances CZ Issues Safety Warnings

However, the good news is that there is a way to mitigate this challenge, according to CZ. Since no crypto wallet is guaranteed to be 100% safe, CZ suggested a way in which the risk could be managed.

According to CZ, keeping all crypto holdings in a single wallet could pose greater risks. Hence, he urged users that spreading crypto holdings across multiple wallets may help reduce the impact of a single exploit, although that approach also comes with its own risks.

Nonetheless, the incident in which $38 million worth of Bitcoin was stolen remains very disturbing to the crypto community, as hardware wallets have long been regarded as one of the safest ways to store crypto assets.

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