Bitcoin rocked by Coldcard exploit w. Freddie New

Summary

The episode focuses on the Coldcard hardware wallet exploit that drained $38 million in Bitcoin due to inadequate entropy generation. Host Gareth Jenkinson and guest Freddy New discuss how the vulnerability worked, the importance of proper entropy, and steps users should take to secure funds. They also cover the broader implications for self-custody, multi-signature setups, and the potential role of agentic AI in finding crypto bugs. The show opens with a news block on Strategy's Q2 loss, Coinbase earnings, Kalshi lawsuit, Circle charter, and crypto legislation.

• Coldcard exploit: $38M Bitcoin drained from ~500 addresses due to weak entropy in firmware
• Freddy New explains why physical entropy (coin tosses, dice) is essential for seed generation
• Advice for affected users: move funds carefully to a new wallet or exchange, avoid panic
• Multi-sig and passphrases add protection but may not fully shield against similar exploits
• Broader takeaway: hardware wallet industry must learn from incidents to improve security
• News headlines include Strategy's $8.2B Q2 loss, Coinbase's mixed earnings, and Kalshi's NY suit