COLDCARD Exploit: Binance Founder CZ Warns, “Nothing is 100%”

Key Insights:

• Binance founder Changpeng Zhao (CZ) says no wallet is completely safe after the reported $40 million COLDCARD exploit.
• Samson Mow urges affected users to document everything and avoid recovery scams.
• Jack Mallers calls on users to act quickly and check affected COLDCARD devices.

The COLDCARD exploit has sparked fresh concern across the Bitcoin community after about 594 BTC, worth nearly $40 million, was stolen from hundreds of hardware wallets. Binance founder CZ, JAN3 chief Samson Mow, and Strike CEO Jack Mallers have all responded. They warned users to review their wallet security and avoid relying on a single method to protect their funds.

CZ Says No Wallet is Completely Safe

News of the COLDCARD exploit spread quickly after reports claimed that about 594 BTC was drained from around 500 hardware wallets in just 25 minutes. The reported loss was valued at roughly $40 million. According to the information shared, the issue was linked to firmware version 4.0.0, which was released in March 2021.

Binance founder Changpeng Zhao, known as CZ, reacted to the incident on X. He said the case shows that even hardware wallets can have problems.

“Even hardware wallets can have bugs. Even old wallets with a long history can have bugs,” he wrote. CZ added that some users may reduce their risk by keeping funds in multiple wallets. At the same time, he said that choice also comes with its own risks. His main point was simple: No storage method is perfect.

He ended his message by telling users to stay informed and stay SAFU. His comments came as many people questioned the safety of hardware wallets. These devices are often used because they keep private keys offline. Even so, the reported COLDCARD exploit has shown that security also depends on the software running on the device.

Samson Mow Calls It a Painful Blow to Self-Custody

JAN3 chief executive Samson Mow said the incident could be worse than a large exchange hack because it affected people who chose self-custody to protect their Bitcoin.

He said many of the victims had already done their research and moved their coins away from exchanges. For that reason, he believes the incident hit some of the most careful Bitcoin holders.

Mow also said people should not look down on those who keep their coins with custodians, use Bitcoin exchange-traded funds, or hold shares in Bitcoin treasury companies. In his view, every option has strengths and weaknesses.

For people affected by the attack, Mow shared several steps. He advised them to write down every detail they know, including wallet addresses, dates, and firmware versions. He also said they should file a police report and contact cybercrime authorities where possible.

Another point he made was not to throw away the wallet or seed phrase. He said both could become important if stolen funds are traced and ownership needs to be proven later.

Mow also warned people not to trust anyone promising to recover lost coins for a fee. He said scammers often target victims after incidents like this.

Jack Mallers Tells Users to Act Quickly

Strike Chief Executive Jack Mallers also spoke about the incident. He described it as one of the most serious wallet security problems Bitcoin has faced.

According to reports, a firmware bug from 2021 caused weak seed generation on affected COLDCARD devices. Instead of using proper hardware randomness, the software reportedly fell back to predictable values. That weakness is believed to have made the theft possible.

Jack Mallers urged anyone using an affected device not to wait. He asked users to contact friends or family who own a COLDCARD wallet so they can check whether they are affected. Mallers also said that anyone needing help could reach out via direct messages or to Strike support.

The COLDCARD exploit has started a wider discussion about wallet security. While hardware wallets are still widely used, the comments from CZ, Samson Mow, and Jack Mallers all carry the same message. Users should stay informed, check their devices, and avoid relying on a single layer of protection.

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