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Unchained · Friday, August 7, 2026

Coldcard Security Issues Worsened by Non-Custodial Nature

The non-custodial nature of Coldcard wallets makes it difficult for the company to warn users about the seed phrase generation vulnerability. This is because Coldcard does not hold user data, preventing them from proactively alerting customers to move their funds.

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The tape

2 quotes
One reason is because the attacks play out like this, where we are going to see losses for the coming weeks and even months, right? The other reason is that these are non-custodial. The Coldcard users specifically are like, pretty hardcore Bitcoiners, Coldcard specifically deleting all of their data.
Tain Monahan
This was like a marketing thing, right? Like they were like, we're not ledger, we don't keep any data. So now they have this five-year-old bug that's racking everyone and they have no way to warn people. Like, you know, like move their money, right?
Tain Monahan
Heard on Unchained — “Inside the Coldcard Hack That Drained Over $100 Million in Bitcoin: Uneasy Money, published Friday, August 7, 2026. Heardvine summarizes and quotes with attribution and timestamps, and links to the original everywhere.
Transcribed via Gemini audio transcription · $0.06
Coldcard Security Issues Worsened by Non-Custodial Nature — Heardvine