Binance founder Changpeng "CZ" Zhao is warning crypto owners not to place blind faith in hardware wallets, following an exploit that drained tens of millions of dollars in Bitcoin from Coldcard devices.
He suggested holders consider spreading their funds across several wallets as one way to reduce exposure, while acknowledging the approach carries its own trade-offs and that no setup is entirely foolproof. CZ closed with his familiar refrain urging users to stay informed and keep their funds safe: “Stay SAFU!”
Galaxy said every sweep paid an identical hardcoded fee and left no change output, a signature it described as consistent with an automated tool spending keys it already held rather than owners moving their own funds. The victims spanned native SegWit and older address types, pointing to multi-path key scanning. The stolen Bitcoin was consolidated within minutes into a handful of addresses and, per Galaxy, has not moved since.
Coinkite has shipped emergency hotfixes and urged exposed users to migrate to newly generated seeds.
