I Asked a Hardware Wallet Engineer About the Coldcard Hack

Last week a major hardware wallet failure shook the Bitcoin world. I sat down with BitBox embedded engineer Niklas Dusenlund to break down exactly what happened with the Coldcard vulnerability, why it happened, what it means for self-custody, and the lessons every Bitcoin holder should take away.

BitBox Seed Generation Guide:

https://bitbox.swiss/bitbox02/BitBox_Diceware_HowTo.pdf

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Follow:https://x.com/thesatstackprimal.net/thesatstackerhttps://www.tiktok.com/@thesatstackhttps://open.spotify.com/show/4b58uoQo9Xl7RsbsbbAqAhhttps://podcasts.apple.com/us/podcast/my-favorite-thing-about-bitcoin/id1788973938http://fountain.fm/show/YqXJoHuG6qYRBmDW1k3700:00 Intro & what happened with Coldcard01:25 How predictable private keys were generated03:42 Why other hardware wallets weren’t affected the same way04:48 Dice rolls, entropy & security tradeoffs10:03 How AI is changing hardware wallet security12:05 Bug bounties, audits & engineering culture17:56 Could wallet collisions have happened?20:52 How the attacker likely planned the theft24:00 Passphrases, multisig & who was protected25:00 Is self-custody still safe?27:55 Choosing a hardware wallet you can trust29:25 Can the stolen bitcoin ever be spent?34:39 Open source vs closed source in the age of AI37:33 Final thoughts: what Bitcoin users should do now