Changpeng Zhao warns about Coldcard incident..."No wallet is 100% safe"

▲ Cryptocurrency wallet, cryptocurrency security, hacking/AI generated image

Up to 594 BTC was drained in less than 30 minutes due to the Coldcard hardware wallet vulnerability incident. Binance co-founder Changpeng Zhao warned that there is no 100% safe way to store cryptocurrency.

According to U.Today on August 1 (local time), the Coldcard vulnerability incident targeting Bitcoin (BTC) holders heightened anxiety in the cryptocurrency market. Attackers drained up to 594 BTC from victims' wallets within 30 minutes. U.Today stated the scale of the incident as $70 million in its headline but reported the stolen amount as $38 million in the body of the article.

Changpeng Zhao emphasized that no cryptocurrency wallet, including hardware wallets, can be completely free from security flaws. He explained that bugs can be found even in wallets that have been used for a long time and have built trust. Changpeng Zhao stated, “No method is 100% safe.”

He also pointed out that concentrating assets in a single wallet can increase risk. Changpeng Zhao explained that distributing assets across multiple wallets can reduce the damage caused by a single vulnerability to the entire holdings. However, he added that managing multiple wallets also comes with separate security risks.

Hardware wallets have been considered a relatively safe means because they store private keys in an environment isolated from the internet. This incident has led to a warning that even hardware wallets cannot be free from software flaws and risks during use. Changpeng Zhao emphasized the need to diversify assets and continuously check security status rather than relying solely on a wallet's reputation.

[Key Article Summary]

-Up to 594 BTC was leaked within 30 minutes due to a vulnerability incident related to the Coldcard hardware wallet.

-Changpeng Zhao warned that bugs can exist even in hardware wallets that have been verified for a long time.

-Changpeng Zhao emphasized avoiding concentrating assets in a single wallet and distributing them across multiple wallets to reduce the scope of damage.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*