Schwartz Proposes 'Nuclear Briefcase' Storage Method Amid Coldcard Hacking Incident..."Opposes Return to Paper Wallets"

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Following the Coldcard hacking incident, which resulted in the theft of 1,367 BTC, the co-founder of the XRP Ledger proposed a 'nuclear briefcase' method for storing Bitcoin.

According to crypto media outlet U.Today on August 3 (local time), David Schwartz, Ripple's honorary Chief Technology Officer and co-founder of the XRP Ledger, opposed the call for a return to paper wallets that emerged after the Coldcard hack. Schwartz stated, "How do you handle inheritance, and how do you prevent theft or loss? Hardware wallets solve both problems."

The hack originated from a Coldcard firmware error. The built-in generator created predictable seed phrases, exposing over 4,500 addresses to attack. Hackers stole 1,367 BTC, valued at approximately $89 million. Schwartz explained that while paper wallets can block online attacks, they are vulnerable to fire, loss, and physical theft.

Schwartz's proposed 'nuclear briefcase' strategy involves creating two additional hardware wallets with the same 24-word seed phrase and PIN. One wallet is entrusted to each of two different relatives. The PIN is kept by two trustworthy acquaintances who are not related to the family.

The acquaintances only reveal the PINs to the relatives after the owner's death. Since the relatives do not know the PINs and the acquaintances do not possess the hardware wallets, neither party can access the Bitcoin (BTC) independently. Schwartz explained that while this method, utilizing a SecuX W20, is not perfect, it is safer than typical storage methods and can establish a Bitcoin inheritance procedure.

[Article Key Summary]

-A hack exploiting a Coldcard firmware error resulted in the theft of 1,367 BTC from over 4,500 addresses.

-Schwartz proposed a 'nuclear briefcase' storage strategy, entrusting hardware wallets and PINs to family and acquaintances separately.

-Separating access means reduces the risk of theft during one's lifetime while establishing a post-mortem inheritance procedure.

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