Coldcard urges immediate fund migration as wallet incident spurs custody debate
The hardware wallet maker told users to update firmware, generate a new seed and move funds, while Muneeb Ali, Binance co-founder CZ and Ledger CTO Charles Guillemet debated diversification, backups and multisig alternatives.
Coldcard said users should treat an ongoing security threat as an emergency, review model-specific advisories, update firmware, generate a new seed phrase and carefully migrate funds. The incident prompted broader debate over Bitcoin self-custody: Stacks co-founder Muneeb Ali argued for diversified storage across spot ETFs, multisignature setups and advanced self-custody, CZ highlighted the practical difficulty of protecting wallet recovery phrases, and Ledger CTO Charles Guillemet said users should match security tools to their threat model rather than reflexively adopting multisig, pointing to Miniscript and MuSig2 as alternatives for some use cases.
- Multisignature wallet: A Bitcoin wallet that requires approvals from more than one key or device before funds can be spent.
- Miniscript: A structured way to define Bitcoin spending conditions, such as inheritance rules, time-locked recovery paths or 2-of-3 authorization, while keeping wallet behavior easier to analyze.
- MuSig2: A cryptographic scheme that lets multiple signers produce one aggregated Bitcoin signature, offering an alternative to traditional script-based multisig.