Short-term impact of the Coldcard incident on Self-Custody

 What's the deal with people moving to CEX after the coldcard incident? Do they even remember the main reason they bought their hardware wallet in the first place which is to keep their money from being frozen unfairly by the exchange? buying ETF still make sense because your money is protected by SIPC up to $500,000 but keeping your money in CEX offers none of that and if the CEX is going down, you will go down too because you are unsecured creditors.
 Title: Re: Short-term impact of the Coldcard incident on Self-Custody
 Post by: Rikafip on August 09, 2026, 04:11:02 PM
-Quote from: shinratensei_ on Today at 03:39:23 AM
+Quote from: shinratensei_ on August 09, 2026, 03:39:23 AM
 What's the deal with people moving to CEX after the coldcard incident?
 I honestly haven't heard anything about it anywhere, but even if there was, It might be pushed by centralized exchanges, using this incident to make people give up on self custody.
 Hell, I still remember CZ saying that 99% of the people would be better off if they keep their crypto on centralized exchanges rather than in their own non custodial wallets.

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1. source content difference between 9 Aug 2026, 23:29 UTC and 12 Aug 2026, 04:46 UTC Current source content +148 -4

   The thread gained multiple replies debating whether users will move to CEXs or ETFs, how long the trust damage will last, and the merits of self custody.

   seen 12 Aug 2026, 04:46 UTC · Captured here 77,369 chars
   What changed from the previous capture 152 lines

    What's the deal with people moving to CEX after the coldcard incident? Do they even remember the main reason they bought their hardware wallet in the first place which is to keep their money from being frozen unfairly by the exchange? buying ETF still make sense because your money is protected by SIPC up to $500,000 but keeping your money in CEX offers none of that and if the CEX is going down, you will go down too because you are unsecured creditors.
    Title: Re: Short-term impact of the Coldcard incident on Self-Custody
    Post by: Rikafip on August 09, 2026, 04:11:02 PM
   -Quote from: shinratensei_ on Today at 03:39:23 AM
   +Quote from: shinratensei_ on August 09, 2026, 03:39:23 AM
    What's the deal with people moving to CEX after the coldcard incident?
    I honestly haven't heard anything about it anywhere, but even if there was, It might be pushed by centralized exchanges, using this incident to make people give up on self custody.
    Hell, I still remember CZ saying that 99% of the people would be better off if they keep their crypto on centralized exchanges rather than in their own non custodial wallets.
    Title: Re: Short-term impact of the Coldcard incident on Self-Custody
    Post by: Taskford on August 09, 2026, 10:25:19 PM
   -Quote from: Rikafip on Today at 04:11:02 PM
   -Quote from: shinratensei_ on Today at 03:39:23 AM
   +Quote from: Rikafip on August 09, 2026, 04:11:02 PM
   +Quote from: shinratensei_ on August 09, 2026, 03:39:23 AM
    What's the deal with people moving to CEX after the coldcard incident?
    I honestly haven't heard anything about it anywhere, but even if there was, It might be pushed by centralized exchanges, using this incident to make people give up on self custody.
    Hell, I still remember CZ saying that 99% of the people would be better off if they keep their crypto on centralized exchanges rather than in their own non custodial wallets.
    Also, users can still take preventive measures on their hardware wallets, such as using passphrases and multisig wallets. So, literally, they can still store their assets very securely on a hardware wallet, far more securely than if they kept them on an exchange.
    Title: Re: Short-term impact of the Coldcard incident on Self-Custody
    Post by: Churchillvv on August 09, 2026, 11:00:46 PM
   -Quote from: Rikafip on Today at 04:11:02 PM
   +Quote from: Rikafip on August 09, 2026, 04:11:02 PM
    Hell, I still remember CZ saying that 99% of the people would be better off if they keep their crypto on centralized exchanges rather than in their own non custodial wallets.
    Of course he is not wrong because from what I observe, the masses I mean the majority of people who are not really crypto enthusiasts are always bent on the idea of not taking the blame, and only the 1% of the people which a good number of the people in the forum might belong to, likes self custody. People just want to push blames to someone to get compensation when things get bad so their best option is to go to CEX or firms to out their bitcoin and take papers home.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: stadus on August 09, 2026, 11:53:06 PM
   +For us who were not affected, the impact would only be temporary. But for those who's hundreds or thousands of bitcoin lost, it might hunt them forever. They will start to doubt self-custody with hardware wallets from now on, if that really works or its just a trap for them.
   +But even with this current issue, I still won't suggest to shift into centralized exchanges and let them manage our bitcoin. That's even more risky for us because we are not the sole owners of our bitcoin now, the exchanges have deeper access compared to us. And when incident like Coldcard happens again, we the owners are the most to be blamed, not the exchange because they don't force us in the very beginning.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: OgNasty on August 10, 2026, 02:12:32 AM
   +I think the short term and long term impact of the coldcard incident is that people won�t be holding their own coins anymore. They will most likely choose to buy bitcoin in the form of ETFs going forward and I can�t say I blame them. I never liked the idea of hardware wallets and I�m waiting for the day something similar happens on Bitcoin L2s.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: shinratensei_ on August 10, 2026, 03:41:04 AM
   +Quote from: Rikafip on August 09, 2026, 04:11:02 PM
   +Quote from: shinratensei_ on August 09, 2026, 03:39:23 AM
   +What's the deal with people moving to CEX after the coldcard incident?
   +I honestly haven't heard anything about it anywhere, but even if there was, It might be pushed by centralized exchanges, using this incident to make people give up on self custody.
   +Hell, I still remember CZ saying that 99% of the people would be better off if they keep their crypto on centralized exchanges rather than in their own non custodial wallets.
   +The people who got their account frozen indefinitely would beg to differ, unfortunately CZ has always been such a fudder, if the coins frozen by the exchange were taken into account and considered as lost, the amount of bitcoin lost from the CEX would sky rocket. If people spend enough time to read their term and conditions they would know that CEX is a losing game when things go wrong.
   +The problem with CEX isn't custody, it's the management that rarely being transparent with its customers and could go down literally any time, you can never trust anyone but yourself when it comes to money. Nobody seen bitmart bankruptcy coming having operated for more than 8+ years but it did come.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: mirakal on August 10, 2026, 11:06:13 AM
   +Quote from: salad daging on August 08, 2026, 07:32:19 AM
   +This is only temporary in my view, because the current situation is still hot about the issue of Coldcard which continues to be discussed therefore many people are hesitant to choose About Self-Custody.
   +Trust me they will go back to the hardware again, continue the matter they want to keep on the exchange or transferred to ETF it becomes their decision, you don't worry too much because I myself still believe in hardware rather than third parties.
   +This issue might remain a hot topic for maybe a month and after that, people will slowly move on from the said incident and would trust a hardware wallet again. Except for those who have lost a significant amount of bitcoin, there might be a mass migration probably and start trusting centralized exchanges again as they will really think it will be safer that way, or just shift into buying Spot Bitcoin ETFs as it is reported that there was a big capital entry with US Bitcoin ETFs a week after the hack.
   +However, these changes can only be temporary, people will still end up trusting self-custody over their bitcoin. Smart investors do not just easily shift their decisions, they know exactly how risky it is to entrust their hard-earned bitcoin to other group or entity.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: arwin100 on August 10, 2026, 11:51:02 AM
   +Quote from: mirakal on August 10, 2026, 11:06:13 AM
   +Quote from: salad daging on August 08, 2026, 07:32:19 AM
   +This is only temporary in my view, because the current situation is still hot about the issue of Coldcard which continues to be discussed therefore many people are hesitant to choose About Self-Custody.
   +Trust me they will go back to the hardware again, continue the matter they want to keep on the exchange or transferred to ETF it becomes their decision, you don't worry too much because I myself still believe in hardware rather than third parties.
   +This issue might remain a hot topic for maybe a month and after that, people will slowly move on from the said incident and would trust a hardware wallet again. Except for those who have lost a significant amount of bitcoin, there might be a mass migration probably and start trusting centralized exchanges again as they will really think it will be safer that way, or just shift into buying Spot Bitcoin ETFs as it is reported that there was a big capital entry with US Bitcoin ETFs a week after the hack.
   +However, these changes can only be temporary, people will still end up trusting self-custody over their bitcoin. Smart investors do not just easily shift their decisions, they know exactly how risky it is to entrust their hard-earned bitcoin to other group or entity.
   +Lots of mix reactions happened after the hack and some people decide to transfer from ETF because of that bad incident happened to them.
   +But as always history always proves that the effects of those hacking incident will only exist for short time, then those people would realize later on that they should not supposed to trust those third party platform since it adds more risk from them.
   +Self custody still the best despite of what happen, since its still good for investor that they have control on their coins.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: Tamaperdana on August 10, 2026, 01:18:20 PM
   +Quote from: Abiky on August 08, 2026, 06:45:21 AM
   +Now that the Coldcard incident has caused millions in BTC losses, I am beginning to wonder how would this affect the self-custodial industry? I mean, will the impact be such that people will avoid hardware wallets forever? After what happened with Coldcard, many decided it was safer to move to a CEX instead. Others went ahead and bought Bitcoin ETFs. This is bad because it gives centralized entities more leverage over Bitcoin.
   +My question is, will the impact be short-lived or a long-lasting one? What would it take for people to trust doing self-custody of their BTC again (via HWs)?
   +Your input would be greatly appreciated. Thank you.
   +I'm not sure what will happen after this, but what's clear is that people will definitely be a little traumatized by this recent incident. So, given the current situation, I think people might need more time to regain confidence in hardware for storing their Bitcoin. Furthermore,, I personally don't do that right now.
   +For the long term,, I'm writing down my Bitcoin wallet phrase, making sure it's correct, and then storing it in a safe place. After that, I deleted all the wallets on my phone. I think that's much safer, as my Bitcoin is currently untouched by the internet. So, I think this is better, because honestly, I'm also worried after this incident. So,, I think isolating my Bitcoin from the internet is the right decision. So, what do you think about my actions?
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: Agbamoni on August 10, 2026, 02:02:17 PM
   +Quote from: Jaycoinz on August 08, 2026, 04:00:56 PM
   +There is no doubt that this has caused a lot of people to even think twice about Bitcoin in general, and some have changed their mindsets on means of keeping their Bitcoin, but moving them to a CEX is not the better option because security issues with CEX are almost certain all the time. There is a case of Bitmart shutting down without properly notifying its users of the suspension time for deposits, and now they have even restricted withdrawals, and so many people have their coins worth hundreds and thousands of dollars stuck in that exchange and same goes with the FTX fall that affected lots of customers.
   +The Coldcard incident is not enough reason for people to start thinking twice about choosing Bitcoin. It is not the first time Bitcoin is lost from either a CEX, ETF, or a non-custodian wallet.
   +I understand many will interpret the wrong message from this news. The message is to take security seriously. Both wallet security and personal security. The attack on Bitcoin from scammers is high in this era. Dont joke with what you have. Protect it at all costs. That is the message.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: Agbe on August 10, 2026, 02:21:58 PM
   +Quote from: Abiky on August 08, 2026, 06:45:21 AM
   +My question is, will the impact be short-lived or a long-lasting one? What would it take for people to trust doing self-custody of their BTC again (via HWs)?
   +Your input would be greatly appreciated. Thank you.
   +From what I had read from some of the users of the ColdCard hardware wallet, they are doubting the future of bitcoin and they said they are not coming back again again to bitcoin. One of them lost bitcoins that he was keeping it for his old age and for his children and this is happened to him and he is very sad. One of them lost 2 BTC. But looking at the whole scenereo, it was a wallet that was attacked and not the bitcoin Blockchain so there is nothing to worry about bitcoin. Things are still going well and the only this that ColdCard has lost it reputation.
   +And the issue do not extend to other Wallets but as human mind there is that fear.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: SeriouslyGiveaway on August 10, 2026, 02:30:19 PM
   +Quote from: Agbe on August 10, 2026, 02:21:58 PM
   +From what I had read from some of the users of the ColdCard hardware wallet, they are doubting the future of bitcoin and they said they are not coming back again again to bitcoin. One of them lost bitcoins that he was keeping it for his old age and for his children and this is happened to him and he is very sad. One of them lost 2 BTC. But looking at the whole scenereo, it was a wallet that was attacked and not the bitcoin Blockchain so there is nothing to worry about bitcoin. Things are still going well and the only this that ColdCard has lost it reputation.
   +They got confused between Bitcoin and Bitcoin wallets. Bitcoin is strong and secure but Bitcoin wallets have strong and weak ones. It's true with Bitcoin hot wallets and Bitcoin cold wallets as hardware wallets are different with each other too. It's not right to think all hardware wallets are the same in security and quality.
   +What happened with Coldcard wallet is very unprecedented and terrible for people who lost their bitcoins but leaving forever or coming back, it's their individual decision while Bitcoin is not responsible for such.
   +Coldcard case actually rang a strong alarm on security of Bitcoin wallets and people must be more carefully when checking reviews about wallets, and choose wallets to use. Lastly using a wallet passphrase since Coldcard hack is like mandatory.
   +https://learnmeabitcoin.com/beginners/security/#passphrase
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: Rikafip on August 11, 2026, 09:46:19 AM
   +Quote from: Churchillvv on August 09, 2026, 11:00:46 PM
   +Of course he is not wrong because from what I observe, the masses I mean the majority of people who are not really crypto enthusiasts are always bent on the idea of not taking the blame, and only the 1% of the people which a good number of the people in the forum might belong to, likes self custody.
   +Just because the majority of people don�t know how to properly store their coins, that doesn�t mean they are safer in someone else�s hands.
   +Centralized exchanges are not banks, and you get very little (if anything) of protection if something goes wrong. If we learned anything from the past, it's that no exchange is 100% foolproof.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: angrybirdy on August 11, 2026, 10:57:20 AM
   +Quote from: stadus on August 09, 2026, 11:53:06 PM
   +For us who were not affected, the impact would only be temporary. But for those who's hundreds or thousands of bitcoin lost, it might hunt them forever. They will start to doubt self-custody with hardware wallets from now on, if that really works or its just a trap for them.
   +But even with this current issue, I still won't suggest to shift into centralized exchanges and let them manage our bitcoin. That's even more risky for us because we are not the sole owners of our bitcoin now, the exchanges have deeper access compared to us. And when incident like Coldcard happens again, we the owners are the most to be blamed, not the exchange because they don't force us in the very beginning.
   +That's right, It would be a temporary impact for us or even to those affected once the issue has been isolated and properly addressed, but it could also possible be a long term impact to all of us if we still experience any security failures or the issue still not resolved. this incident taught us an important things to remember, whether we choose centralized exchange or self custody, we personally should have take the responsibility and understand the risks of both sides when it comes to managing our assets. I think, the better approach is not totally shift the responsibility to the centralized exchange but to enhance our personal security practices and totally understand the risk we are accepting.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: Kryptowerk on August 11, 2026, 12:57:52 PM
   +Quote from: Abiky on August 08, 2026, 06:45:21 AM
   +Now that the Coldcard incident has caused millions in BTC losses, I am beginning to wonder how would this affect the self-custodial industry? I mean, will the impact be such that people will avoid hardware wallets forever? After what happened with Coldcard, many decided it was safer to move to a CEX instead. Others went ahead and bought Bitcoin ETFs. This is bad because it gives centralized entities more leverage over Bitcoin.
   +My question is, will the impact be short-lived or a long-lasting one? What would it take for people to trust doing self-custody of their BTC again (via HWs)?
   +Your input would be greatly appreciated. Thank you.
   +To directly address your question: Even though the losses are terrible for the people affected it's still a relatively small amount and the effects will not last that long.
   +Now, self-custody IS ONE OF THE CORE PRINCIPLES of what sets Bitcoin apart from all the fiat-trash out there. So nothing has changed here.
   +Hopefully awareness on secure private key generation has gone up by a bit, but I generally doubt it.
   +Nowadays the biggest attack-vectors are most likely compromised machines (computer, phone, tablet) when people set up their HW wallet. If someone can record your screen while you setup any HW wallet and see your recovery phrase, your keys are obviously compromised. The best hardware wallet will not change anything about that.
   +So ideally make sure you have a great air-gapped offline setup when creating your keys, even for established open-source HW wallets such as Trezor etc.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: nelson4lov on August 11, 2026, 01:58:10 PM
   +The biggest short term impact is that most people will just default to saving their coins on centralized exchanges. Even Binance Founder, CZ, has started to make tweets that storing on exchanges is the next best thing right now. But I do think this will be temporary though because even the people moving to CEX know that long term, self-custody is still the best bet for storing Bitcoin and crypto.
   +Self custody via hardware wallet used to be like the holy grail. Now, that Coldcard hack have left a sour taste in people's mouth.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: Nrcewker on August 11, 2026, 02:46:40 PM
   +I think moving towards a centralised exchange isn�t the ideal solution. We all know that hacks and attacks can happen on centralised exchanges as well. On top of that we are also letting the government know about the coins we are holding.
   +At least for me this isn�t the kind of privacy I was looking for when I became interested in Bitcoin back in 2014�15. I know the Coldcard incident has shaken many Bitcoin holders but going to a CEX, IMO isn�t a good move.
   +We just need to be more careful with our hardware wallets. That�s all I can say for now.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: Silverstonez on August 11, 2026, 03:42:54 PM
   +Those who are sending their Bitcoin to central exchanges are making a very big mistake, and the sooner they realize it, the better for them.  However, the coldcard wallet incident would definitely make people start doubting self custodial industry, which may effect the industry significantly. And there is no way the coldcard wallet incident would make people avoid hardware wallet forever, it is just that people will become more skeptical about hardware wallets.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: Abiky on August 11, 2026, 04:08:03 PM
   +Quote from: free-bit.co.in on August 08, 2026, 07:05:30 AM
   +If you are scared and send your Bitcoin to CEX, is that a security improvement, hmm?
   +It just nothing but changes the type of risk.
   +In self custody, you have to manage your own risk. You have to ensure of your hardware/seed/backup's security.
   +But in CEX your risk will be on exchange failure, hack, withdrawal freeze, insolvency, account seizure or counterparty risk. If we talk about ETF, you do not control your private key of Bitcoin here. So I don't see any logic in centralizing entire custody model as a response to a vendor failure at Coldcard.
   +I know, it's stupid. But many people think CEXs are better because they're regulated entities. A scandal like this from a hardware wallet company, scares away noobs. There's a lot of FUD regarding the self-custody industry. Things like "self-custody is dead", and "Bitcoin got hacked" damage the industry's reputation.
   +Will people trust hardware wallets again? That's an excellent question. Hopefully, this will pass as we unveil a new chapter in crypto security. Only time will tell.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: Pakistani Shaheen on August 11, 2026, 04:33:57 PM
   +Quote from: Silverstonez on August 11, 2026, 03:42:54 PM
   +Those who are sending their Bitcoin to central exchanges are making a very big mistake, and the sooner they realize it, the better for them.  However, the coldcard wallet incident would definitely make people start doubting self custodial industry, which may effect the industry significantly. And there is no way the coldcard wallet incident would make people avoid hardware wallet forever, it is just that people will become more skeptical about hardware wallets.
   +It is necessary to understand the disbelief of number of people following the Coldcard incident, but we won't have Bitcoin on a centralized exchange fixed. It is simply swapping risks and the trading risk has been much worse over time.
   +Coldcard issue will be resolved. They will do more research, ask for more transparency from the manufacturer and then they will move on. That has always been the case of the industry following each security incident.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: Dogedegen on August 11, 2026, 07:49:24 PM
   +Quote from: Nrcewker on August 11, 2026, 02:46:40 PM
   +I think moving towards a centralised exchange isn�t the ideal solution. We all know that hacks and attacks can happen on centralised exchanges as well. On top of that we are also letting the government know about the coins we are holding.
   +At least for me this isn�t the kind of privacy I was looking for when I became interested in Bitcoin back in 2014�15. I know the Coldcard incident has shaken many Bitcoin holders but going to a CEX, IMO isn�t a good move.
   +We just need to be more careful with our hardware wallets. That�s all I can say for now.
   +It isn't the ideal solution but there is no solution that is meant for everyone. Many maximalists get these things wrong because they are behaving irrationally about this kind of topic. When we talk about custodial and non custodial solutions we already have to ask the question who is it for? There are many elderly people and there are even people in their 50s who can't even find out who they are following with their TikTok profile. This kind of person is not able to self custody and they should not even try! The chance that they will do something wrong directly or lose their money through some kind of hack or phishing scam is very very high. In comparison to that, using a very reliable and regulated CEX for them is extremely safe. Now this kind of setup is completely different for someone who is good with technology, for him or her the risks are the reverse. They have a higher chance of losing money through the CEX and they miss out on some of the core principles of Bitcoin that relate to self custody.
   +So while doing self custody is the best, it is not for everyone and we need to be careful who were recommend this stuff for. I think that most coldcard users of the wallet that was hacked are capable of doing most self custody solutions so they should not return to CEX use because of this incident.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: savetheFORUM on August 11, 2026, 08:28:31 PM
   +Quote from: Nrcewker on August 11, 2026, 02:46:40 PM
   +I think moving towards a centralised exchange isn�t the ideal solution. We all know that hacks and attacks can happen on centralised exchanges as well. On top of that we are also letting the government know about the coins we are holding.
   +At least for me this isn�t the kind of privacy I was looking for when I became interested in Bitcoin back in 2014�15. I know the Coldcard incident has shaken many Bitcoin holders but going to a CEX, IMO isn�t a good move.
   +We just need to be more careful with our hardware wallets. That�s all I can say for now.
   +In a world where people are sharing their nude photos literally for 5 bucks, I do not think that privacy is as much cared about by the general public as you might imagine. I mean, of course not everyone does that, but we share our food, our thoughts, our vacations, our trips, our business; basically, everything about us is online. Billions of people, every single day, share everything about themselves.
   +So you can feel assured that privacy coins will not get any attention at all. CEX, for that matter, is not really that bad, because you are only trading, and if you only trade, then there is nothing to worry about because you do not have to keep your money in there. You could deposit to an exchange, trade, and withdraw all within 10 minutes. If you trust a place enough to be in there for 10 minutes, then you will be fine. Maybe one day something bad will happen, but if you keep holding all your money in a CEX, then you will lose it all. If you only get in and get out within 10 minutes, then there is a big chance that you will not have any money in there when the bad thing happens.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: Ziskinberg on August 11, 2026, 09:58:20 PM
   +Quote from: Nrcewker on August 11, 2026, 02:46:40 PM
   +I think moving towards a centralised exchange isn�t the ideal solution. We all know that hacks and attacks can happen on centralised exchanges as well. On top of that we are also letting the government know about the coins we are holding.
   +At least for me this isn�t the kind of privacy I was looking for when I became interested in Bitcoin back in 2014�15. I know the Coldcard incident has shaken many Bitcoin holders but going to a CEX, IMO isn�t a good move.
   +We just need to be more careful with our hardware wallets. That�s all I can say for now.
   +Clearly it's not the ideal solution but it could be the quickest realization of these bitcoin holders. If self-custody isn't safe anymore, then they might end up risking their bitcoin to a centralized exchange again, most particularly those who are affected with the Coldcard exploit, or they might stop investing in bitcoin for a while until they are fully emotionally recovered.
   +However, we all know that the last incident was very hard and painful. But isn't the very reason of losing or frustration is to be more careful and cautious the next time you do it, so we should not get carried away with our emotions, shifting into CEX won't be the best solution after what happened to Coldcard.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: blockman on August 11, 2026, 10:04:56 PM
   +I am starting to see questions of self custody in the social media influencers that I am following bringing this issue to their followers. They're now questioning if the supposed to be the bad and opposite choice of putting balance on the centralized exchanges and other custodial wallets is the better one these days. I'm not agreeing with them, although this is a big issue from coldcard. I still believe wholly that it's still best to choose the noncustodial type of keeping our coins and split it into several of them if you've got a lot to keep.
   +Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   +Post by: Russlenat on August 11, 2026, 10:22:06 PM
   +There are really some incidents that could happen inevitably, but I don't think one huge loss will ruined everything the good reputation of having a hardware wallet. If you are one good investor, and you have witnessed the past lapses and threats of trusting a CEX, then I don't think you will definitely leave the self-custody thing and risk your assets into trusting a centralized exchange.
   +We all know that CEX are even more risky to put our coins there, so why take the risk and regret after? I still believe this is just temporary, people may learned the hard way but will still trust hardware wallet over CEX.
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   Bitcoin Forum
   Bitcoin => Bitcoin Discussion => Topic started by: Abiky on August 08, 2026, 06:45:21 AM
   Title: Short-term impact of the Coldcard incident on Self-Custody
   Post by: Abiky on August 08, 2026, 06:45:21 AM
   Now that the Coldcard incident has caused millions in BTC losses, I am beginning to wonder how would this affect the self-custodial industry? I mean, will the impact be such that people will avoid hardware wallets forever? After what happened with Coldcard, many decided it was safer to move to a CEX instead. Others went ahead and bought Bitcoin ETFs. This is bad because it gives centralized entities more leverage over Bitcoin.
   My question is, will the impact be short-lived or a long-lasting one? What would it take for people to trust doing self-custody of their BTC again (via HWs)?
   Your input would be greatly appreciated. Thank you.
   Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   Post by: free-bit.co.in on August 08, 2026, 07:05:30 AM
   If you are scared and send your Bitcoin to CEX, is that a security improvement, hmm?
   It just nothing but changes the type of risk.
   In self custody, you have to manage your own risk. You have to ensure of your hardware/seed/backup's security.
   But in CEX your risk will be on exchange failure, hack, withdrawal freeze, insolvency, account seizure or counterparty risk. If we talk about ETF, you do not control your private key of Bitcoin here. So I don't see any logic in centralizing entire custody model as a response to a vendor failure at Coldcard.
   Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   Post by: Chibit01 on August 08, 2026, 07:05:43 AM
   I can tell for sure how much time that's needed for people to move past the trauma, but it also calls for more scrutiny and checking of source code over and over again to make sure there are no vulnerabilities that can be exploited. Being open source alone is not enough.
   The hardware wallet and how people view them now will change and the best decision to take is not to move someone's holdings down to centralised entities. Instead, diversifying your holdings into different open-source wallets will best both the hot wallet and the cold wallet.
   Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   Post by: Dogedegen on August 08, 2026, 07:15:00 AM
   Quote from: Abiky on August 08, 2026, 06:45:21 AM
   Now that the Coldcard incident has caused millions in BTC losses, I am beginning to wonder how would this affect the self-custodial industry? I mean, will the impact be such that people will avoid hardware wallets forever? After what happened with Coldcard, many decided it was safer to move to a CEX instead. Others went ahead and bought Bitcoin ETFs. This is bad because it gives centralized entities more leverage over Bitcoin.
   People make false conclusions using correct and false premises all the time, there is nothing that you can do about that seriously. You can provide education but that only works with people who want to get educated, you can't force it on people so many will ignore the correct advice. If you look at the data on hardware wallet hacks and CEX hacks, the conclusion is factually correct that using a CEX is significantly more insecure than using a hardware wallet. So if some people want to draw false conclusions that are not based on real data, there is nothing that we can do about that. They may learn their lesson once they lose their money in a big CEX hack, or they might not learn the lesson at all. Also this situation poses a good learning opportunity for everyone, because we now know that all hardware wallet should always be used with a passphrase because that would prevent a compromise like this.
   Quote from: Abiky on August 08, 2026, 06:45:21 AM
   My question is, will the impact be short-lived or a long-lasting one? What would it take for people to trust doing self-custody of their BTC again (via HWs)
   The impact is short lived and it is limited to people who don't know how to conduct data and reason properly, you can't really do anything about that. All the data we have points at the superiority of hardware wallets and we have educational information everywhere, there is nothing else that can be done.
   Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   Post by: m2017 on August 08, 2026, 07:20:46 AM
   Quote from: Abiky on August 08, 2026, 06:45:21 AM
   Now that the Coldcard incident has caused millions in BTC losses, I am beginning to wonder how would this affect the self-custodial industry?
   Now, some users will be more cautious regarding the storage of their assets.
   Quote from: Abiky on August 08, 2026, 06:45:21 AM
   I mean, will the impact be such that people will avoid hardware wallets forever?
   Every year, a large number of people die in car accidents (around 1.2 million, according to online data), yet that doesn't stop the global population from using cars, does it? That is why I believe the recent incident won't "kill" the HW market for these devices. After all, they remain one of the best ways to store cryptocurrencies (with the possible exception of Coldcard). Furthermore, a vulnerability in one company's device doesn't mean that all these devices have suddenly become useless trinkets.
   Quote from: Abiky on August 08, 2026, 06:45:21 AM
   After what happened with Coldcard, many decided it was safer to move to a CEX instead.
   Because they forgot the Mt. Gox and FTX sagas (as well as what happened with other exchanges) all too quickly.
   Quote from: Abiky on August 08, 2026, 06:45:21 AM
   Others went ahead and bought Bitcoin ETFs.
   Everyone makes their own choice. There is no need to reproach anyone for that.
   Quote from: Abiky on August 08, 2026, 06:45:21 AM

   Excerpt only. The complete copy is held offline and backs quotations on this site. The original publication remains the canonical public source.

2. Earliest copy held
   seen 9 Aug 2026, 23:29 UTC · Captured here 50,850 chars
   Extracted text as captured

   Bitcoin Forum
   Bitcoin => Bitcoin Discussion => Topic started by: Abiky on August 08, 2026, 06:45:21 AM
   Title: Short-term impact of the Coldcard incident on Self-Custody
   Post by: Abiky on August 08, 2026, 06:45:21 AM
   Now that the Coldcard incident has caused millions in BTC losses, I am beginning to wonder how would this affect the self-custodial industry? I mean, will the impact be such that people will avoid hardware wallets forever? After what happened with Coldcard, many decided it was safer to move to a CEX instead. Others went ahead and bought Bitcoin ETFs. This is bad because it gives centralized entities more leverage over Bitcoin.
   My question is, will the impact be short-lived or a long-lasting one? What would it take for people to trust doing self-custody of their BTC again (via HWs)?
   Your input would be greatly appreciated. Thank you.
   Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   Post by: free-bit.co.in on August 08, 2026, 07:05:30 AM
   If you are scared and send your Bitcoin to CEX, is that a security improvement, hmm?
   It just nothing but changes the type of risk.
   In self custody, you have to manage your own risk. You have to ensure of your hardware/seed/backup's security.
   But in CEX your risk will be on exchange failure, hack, withdrawal freeze, insolvency, account seizure or counterparty risk. If we talk about ETF, you do not control your private key of Bitcoin here. So I don't see any logic in centralizing entire custody model as a response to a vendor failure at Coldcard.
   Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   Post by: Chibit01 on August 08, 2026, 07:05:43 AM
   I can tell for sure how much time that's needed for people to move past the trauma, but it also calls for more scrutiny and checking of source code over and over again to make sure there are no vulnerabilities that can be exploited. Being open source alone is not enough.
   The hardware wallet and how people view them now will change and the best decision to take is not to move someone's holdings down to centralised entities. Instead, diversifying your holdings into different open-source wallets will best both the hot wallet and the cold wallet.
   Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   Post by: Dogedegen on August 08, 2026, 07:15:00 AM
   Quote from: Abiky on August 08, 2026, 06:45:21 AM
   Now that the Coldcard incident has caused millions in BTC losses, I am beginning to wonder how would this affect the self-custodial industry? I mean, will the impact be such that people will avoid hardware wallets forever? After what happened with Coldcard, many decided it was safer to move to a CEX instead. Others went ahead and bought Bitcoin ETFs. This is bad because it gives centralized entities more leverage over Bitcoin.
   People make false conclusions using correct and false premises all the time, there is nothing that you can do about that seriously. You can provide education but that only works with people who want to get educated, you can't force it on people so many will ignore the correct advice. If you look at the data on hardware wallet hacks and CEX hacks, the conclusion is factually correct that using a CEX is significantly more insecure than using a hardware wallet. So if some people want to draw false conclusions that are not based on real data, there is nothing that we can do about that. They may learn their lesson once they lose their money in a big CEX hack, or they might not learn the lesson at all. Also this situation poses a good learning opportunity for everyone, because we now know that all hardware wallet should always be used with a passphrase because that would prevent a compromise like this.
   Quote from: Abiky on August 08, 2026, 06:45:21 AM
   My question is, will the impact be short-lived or a long-lasting one? What would it take for people to trust doing self-custody of their BTC again (via HWs)
   The impact is short lived and it is limited to people who don't know how to conduct data and reason properly, you can't really do anything about that. All the data we have points at the superiority of hardware wallets and we have educational information everywhere, there is nothing else that can be done.
   Title: Re: Short-term impact of the Coldcard incident on Self-Custody
   Post by: m2017 on August 08, 2026, 07:20:46 AM
   Quote from: Abiky on August 08, 2026, 06:45:21 AM
   Now that the Coldcard incident has caused millions in BTC losses, I am beginning to wonder how would this affect the self-custodial industry?
   Now, some users will be more cautious regarding the storage of their assets.
   Quote from: Abiky on August 08, 2026, 06:45:21 AM
   I mean, will the impact be such that people will avoid hardware wallets forever?
   Every year, a large number of people die in car accidents (around 1.2 million, according to online data), yet that doesn't stop the global population from using cars, does it? That is why I believe the recent incident won't "kill" the HW market for these devices. After all, they remain one of the best ways to store cryptocurrencies (with the possible exception of Coldcard). Furthermore, a vulnerability in one company's device doesn't mean that all these devices have suddenly become useless trinkets.
   Quote from: Abiky on August 08, 2026, 06:45:21 AM
   After what happened with Coldcard, many decided it was safer to move to a CEX instead.
   Because they forgot the Mt. Gox and FTX sagas (as well as what happened with other exchanges) all too quickly.
   Quote from: Abiky on August 08, 2026, 06:45:21 AM
   Others went ahead and bought Bitcoin ETFs.
   Everyone makes their own choice. There is no need to reproach anyone for that.
   Quote from: Abiky on August 08, 2026, 06:45:21 AM

   Excerpt only. The complete copy is held offline and backs quotations on this site. The original publication remains the canonical public source.