This week, $89M in Bitcoin was drained from Coldcard hardware wallets. The cause: a flaw in how the wallet generated private keys. One weak seed, one point of failure, and the funds were gone. The lesson isn't "hardware wallets are bad." It's that any wallet holding your entire key in one place is a single point of failure. It's why Defi App wallets use MPC. Your key isn't stored whole. It's split into encrypted shares. No single point to exploit. No single seed to guess. Security isn't a feature. It's the foundation.

This week, $89M in Bitcoin was drained from Coldcard hardware wallets. The cause: a flaw in how the wallet generated private keys. One weak seed, one point of failure, and the funds were gone. The lesson isn't "hardware wallets are bad." It's that any wallet holding your entire key in one place is a single point of failure. It's why Defi App wallets use MPC. Your key isn't stored whole. It's split into encrypted shares. No single point to exploit. No single seed to guess. Security isn't a feature. It's the foundation.

Source:https://x.com/defiapp/status/2084308153584304594