Peter Todd: Self Custody Stays King After Coldcard Bug

Bitcoin developer Peter Todd recently addressed concerns following a software vulnerability found in Coldcard hardware wallets. While the issue reportedly puts around 88 million dollars worth of assets at risk, Todd argues that self custody is still far more secure than leaving funds on a centralized exchange.

He pointed to the historical collapse of the QuadrigaCX exchange as a clear example of why users should manage their own keys. When a centralized platform fails or faces an exploit, users often lose everything without any way to recover their funds. Self custody ensures that individual owners keep control regardless of what happens to a specific wallet manufacturer.

This debate highlights the constant trade offs between hardware convenience and digital security. Investors should keep a close eye on future firmware updates from hardware providers. For now, the takeaway is that even with occasional technical bugs, personal control remains the safest path for long term holders.