Most people hear “hardware wallet hack” and imagine someone breaking into the device. That is not the important part of the Coldcard case. The attacker did not need the wallet. They did not need the PIN. They did not need the victim’s laptop. They attacked weak seed generation. A seed phrase is the root secret of the wallet. If that secret was created with poor randomness, the attacker has a smaller search space. The device can be cold. But if the seed was born weak, the wallet was never truly strong. I broke down what happened, why it matters, and what holders can do differently
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