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.
In his statement, Binance’s CZ reminded users that no crypto platform is completely immune to security flaws, regardless of its reputation or track record.
He explicitly referred to hardware wallets and even older crypto wallets with a long history, noting that either of them can have bugs.
Binance’s 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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