Binance founder Changpeng "CZ" Zhao is cautioning Bitcoin holders to diversify how they store their crypto after a wallet exploit tied to Coldcard hardware devices grew to an estimated $70 million in losses—roughly double the figure first reported.
The Exploit Grows
Galaxy Research raised its estimate of the total damage from the Coldcard-related incident to around $70 million, nearly twice the initial assessment. The revision underscores how the scale of security breaches often expands as investigators trace the full extent of compromised funds.
Hardware wallets like Coldcard are typically marketed as among the safest ways to hold Bitcoin, since they keep private keys offline and away from internet-connected threats. Incidents that undermine that assumption tend to rattle a community that leans heavily on such devices for cold storage.
"Nothing is 100%," CZ warned, cutting through the myth that any single storage method is bulletproof.
CZ's Advice To Holders
The Binance founder used the moment to press a familiar message about risk management: don't put all your coins in one place. Spreading funds across multiple wallets limits the damage if any single device or setup is compromised.
CZ's warning reflects a broader principle in crypto self-custody, where users bear full responsibility for securing their assets without the safety net that traditional banks provide. A single point of failure can wipe out an entire holding.
For Bitcoin holders weighing their options, the takeaway is straightforward:
- No storage method is entirely immune to compromise
- Diversifying across multiple wallets reduces exposure
- Hardware devices remain safer than hot wallets, but not infallible
The episode serves as a reminder that even trusted tools carry residual risk, and that vigilance remains essential as attackers continue to probe for weaknesses across the crypto ecosystem.