Satoshi Candidate Peter Todd Warns No Bitcoin Is Safe on Singlesig After $38 Million Coldcard Drain

What happened

Bitcoin developer Peter Todd warned that a software bug in Coldcard hardware wallets let attackers guess the random number generator and steal 594 BTC, worth about $38 million, from single‑signature wallets.

Confirmed

Global impact / market context

The breach shows that even dedicated hardware wallets can have critical flaws, raising concerns about the safety of funds stored in single‑signature (singlesig) setups and prompting users to reassess their security practices.

Analyst inference

Investors may view the incident as a reminder that technical risks can affect crypto assets, potentially influencing demand for more robust wallet solutions or alternative custody methods.

Analyst inference

What to watch

1. Coldcard’s response – whether the company releases a firmware patch or recall to fix the entropy bug and protect existing wallets. Proposed
2. Adoption of multi‑signature (multisig) wallets – users may shift to wallets that require multiple keys, reducing single‑point‑of‑failure risk. Analyst inference
3. Regulatory scrutiny of crypto custody – regulators could examine hardware wallet security standards after high‑value losses. Proposed

Affected assets

• BTC — Bitcoin

Evidence

• u.today