COLDCARD was HACKED — This is why we use BITKEY!

All right, so what happened? Yesterday, Coldcard, the company that uh is behind well, I should say Coinkite, specifically their Coldcard products, um got hacked because somebody was using AI to analyze the software, and they realized a flaw in the software. There was a software glitch in the Coldcard software for their version 4 3 4 and 5 products, and including their Coldcard Q. Uh I think they have a Mark III, Mark IV, Mark V, and Coldcard Q. All of them were susceptible to the software bug. Now, you do not need to worry about this with regard to Bitcoin itself. Bitcoin itself does not have security bugs like this. And you don’t need to worry about this if you are using Bitkey. Uh b i t k e y, the by far best uh way to safely and securely store your Bitcoin for the long haul. Bitkey, for reasons I will explain, is not subject to these sorts of security bugs, either. Also, if you have your Bitcoin on uh River or Coinbase or somewhere like that, you probably don’t need to worry about these sort of hacks. You But you do need to worry about hackers and scammers. In all scenarios, Bitkey fixes all of your problems. Bitkey fixes your problems with hackers, it fixes your problems with scammers, it fixes your problems with security bugs and all that sort of stuff. So, why does it do that? First of all, let’s talk about what happened at Coldcard. So, Coldcard, somebody figured out there was a bug in the software so that when it was generating private keys, which are represented by either 12 or 24 words called a seed phrase, when it was generating that, it was supposed to be using a total number of possible keys equivalent to the number of atoms in the universe, which is just a bizarrely astronomically large number. So large a number that it’s completely impossible for anyone to count you know, to even attempt to like count them by hand or anything like that. I mean, it’s just ridiculously large numbers. Um but what it was actually doing, what the software was doing that it was not supposed to be doing, was it was generating a key that was only a total address space of 4.3 billion, which is 2 to the 32nd. Well, a 2 to the 32nd uh total address space, this person, this hacker, figured out that all of the uh keys were being generated and that there was a way to figure out what that possible address space was. And they figured out how programmatically to check all 4.3 billion of those addresses to see if there was any Bitcoin there. Now, normally if you just randomly check 4.3 billion addresses, so what? Like, that’s completely irrelevant. It’s like checking one grain of sand in the universe and hoping to be it’s the exact grain of sand that everyone else in the universe decided to keep their Bitcoin. Well, of course, you’re probably not even in the right galaxy. You’re probably not even in the even in the right I mean, you’re definitely not even in the same solar system. Like, it’s just ridiculous. But anyway, if you only have 4.3 billion addresses to check, which due to this glitch in Coldcard was the total address space, then you can actually scan through them. And so, they used an application programming interface, an API, probably with Coinbase, although it could have been with Kraken, or it could have been with any of the major exchanges. They used an application programming interface to check the balance at each of those addresses. And because they knew what the address, the private key of that address was, uh all at one time yesterday, they swept about 600 Bitcoin, equivalent to about $38 million, which is a tiny drop in the drop in the bucket compared to the total value of Bitcoin, but, you know, obviously a lot of money. Um, so they swept all of the funds from all of those wallets into their own wallet. Because again, they were able to figure out what those private keys were. All right, so it was a software glitch, the random number generator, RTG RNG, random number generator. Um, the RNG was not working properly. It was supposed to generate uh addresses from effectively an infinite address space and instead was generating addresses from a very finite address space of only 4.3 billion. Still a large number, but obviously computers are capable of working through numbers as small as 4.3 billion. They are not capable of working through numbers such as running, you know, a calculation to check every single Bitcoin uh seed phrase when there are more of those than there are atoms in the universe. I mean, that’s just insane. So, how does BitKey solve this? First of all, BitKey is multi-signature. When you actually touch the BitKey device to your phone, what you are actually doing is you are combining two signatures. One of that is held on your phone and one that is held on the BitKey device, and that is what is being used to move the Bitcoin. Those signatures um are generated separately from each other. They do not use the same random number generator. So, a glitch like in Coldcard that exists in one of those would not exist in the others. So, BitKey has done a very good job of making sure there there’s redundancy all through their system. So, the ways their addresses are generated are not using the same software. The way it chains everything together is not essentially they made it impossible uh based on the software they use and how they go about it for a single software glitch to result in a problem like that. So, worst-case scenario, uh if something like this ever did affect a BitKey, which it won’t, um uh worst case they would say, “Hey, there’s a minor issue. You just need to touch your BitKey device to the back of your phone so it can generate a new address. No big deal. You know, only one of two addresses was compromised. Doesn’t matter. It’s like a lockbox at the bank. It requires two two keys to open. One key does not let you open the box.” So, anybody that is using a single signature, which is a Trezor or a Ledger or a Coldcard, is potentially vulnerable to something like this because of a software glitch in the random number generator RNG of any of these devices could create this problem. Again, BitKey does not have this problem, which is why I’ve been recommending BitKey from the beginning because BitKey is not subject to the same potential software issues, the same hacks, the same there’s no seed phrase to lose or get hacked or, you know, accidentally store in Apple iCloud or Google Drive if you take a picture of it, you know, it’s going to end up getting in the hands of hackers. BitKey bypasses all of those by working in a completely different way. Um so, that is why I recommend BitKey. BitKey is super elegant. There’s a million ways it backs up your Bitcoin. Uh there’s a million ways to recover if you lose your phone, if you lose the BitKey device, if you lose your phone and the BitKey device. If you I mean, you know, if the company behind it, which is Block, which is a Fortune 500 company, if they disappear from the planet, you can still get your Bitcoin. They built in every conceivable way to make sure you never lose your Bitcoin and simultaneously did that where there is no single point of failure. So, there’s no you’re never dependent on one piece of software, you’re never dependent on one you’re never there is no seed phrase, so you don’t even have to worry about hacks and scams related related to seed phrases because they literally do not exist. Seed phrases do not exist at all in the BitKey ecosystem. They built their technology where it completely bypasses having seed phrases. And so, you just don’t have to worry about all this stuff. Every time there’s some bad thing that happened to someone on Twitter, you know, everybody’s like, “Oh, there’s nothing we could have do done. There’s nothing we could have done to avoid this.” And I’m like, “Yes, there was, you morons. You could have used BitKey.” Like, all of these problems BitKey solves these. It was specifically engineered to eliminate all of these problems. That’s why they built it. They built it so that it would not have any of these problems so that your Bitcoin is safe and secure. So, the bottom line is if you have a cold card, you need to get your funds off of that cold card as as as conceivably possible before that hacker sweeps your funds and you check your balance and it drops to zero. So, if you have a cold card, which you shouldn’t because you should be using BitKey, but if you do, you need to fix that and get your funds off of there as fast as possible. And regardless, you need a BitKey. Go buy yourself a BitKey. It’s a the best investment you will ever make to secure your Bitcoin is a BitKey. b i t k e y dot world bitkey.world Go get one. Best thing you’ll ever do and you don’t have to worry about hacks and scams and software bugs and all of this stuff that people are worried about over the last 48 hours. You just don’t have to worry about any of that if your Bitcoin is secure with BitKey. So, you know what to do. Make it happen. Thanks.