The Coldcard Teardown, and a Brutal Week Onchain

Summary

The panel breaks down the Coldcard hardware wallet entropy bug that let attackers steal over $100M in Bitcoin across five years, discusses a $60M perp liquidation on Trade.xyz due to an oracle mispricing, and debates Aave’s move to cut support for underperforming chains. The main focus is a heated discussion around EIP 8361, a controversial proposal to slash ETH issuance, which the guests argue would centralize the network, kill liquid staking yields, and badly harm ETH price.

• Coldcard’s flawed entropy generation since 2021 allowed attackers to brute-force private keys and drain more than $100M from hardcore Bitcoiners.
• A unique Oracle issue on Trade.xyz caused a SK Hynix perp to crash 18% on thin pre‑market volume, sparking debate over when a venue should roll back trades.
• Aave is retreating from its “be everywhere” multi‑chain expansion after concluding that being on many chains is negative EV.
• EIP 8361 proposes reducing ETH staking issuance, with a 48‑hour comment window that angered builders; the panel sees it as a rushed, dangerous idea.
• Guests warn that slashing staking yields would destroy ETH looping, hurt liquid staking tokens like Lido and Ether.fi, and lead to more centralization.
• The conversation touches on whether AI can discover such entropy bugs, and whether North Korea was involved—concluding that professional brute‑forcers, not Lazarus, likely executed the Coldcard theft.
• The panel advises hardware wallet users to check audit history and development practices, and stresses that diversity of custody remains the only free lunch.