🚨 MORE BITCOIN HACKS?!?!?!?!?

Analysis of ongoing Bitcoin hacks focusing on vulnerabilities in cold wallets, urging users to move funds and reconsider self-custody options.

Ask about this video. Answers come from its transcript only — with the timestamp, so you can check them.

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Key Takeaways

Bitcoin core and protocol remain secure; the hacks target wallet vulnerabilities.
Users should immediately move Bitcoin off compromised cold wallets, especially Coin Kite products.
Self-custody requires careful vetting of wallet security; blind trust can lead to losses.
Temporary use of exchanges might be safer until wallet security is assured.
Backup solutions are critical to protect against loss from hacks or bugs.

What the video covers

Recent Bitcoin hacks have resulted in losses close to $110 million, primarily due to vulnerabilities in certain cold wallets.
The issue stems from a five-year-old bug in a popular cold wallet by Coin Kite, where the vault key was easy to guess.
Bitcoin itself and its core self-custody code remain secure; the problem lies with specific wallet implementations.
Normal users are advised to remove Bitcoin from affected cold wallets immediately, especially Coin Kite products.
Technical experts may have options to secure funds, but most users should consider moving Bitcoin to exchanges temporarily.
Many affected users lacked backup solutions, exacerbating the impact of the hacks.
The incident challenges the 'don't trust, verify' mantra as users had to trust wallet providers who failed.
The community is divided, with some downplaying risks while others emphasize the severity and recommend caution.
The creator is working on solutions and encourages subscriptions for updates on safer custody methods.
Institutional custody and ETFs remain unaffected, and the broader Bitcoin ecosystem continues to evolve positively despite these setbacks.

Chapters

Are Bitcoin and its core protocol affected by these hacks?

No, the Bitcoin protocol and its core self-custody code remain secure. The hacks exploit vulnerabilities in specific wallet implementations, not Bitcoin itself.

What should users do if they have Bitcoin on affected cold wallets?

Users, especially non-technical ones, are advised to immediately move their Bitcoin off affected cold wallets, particularly any products by Coin Kite, to safer storage options.

Is self-custody still a safe option for Bitcoin holders?

Self-custody remains a valid option, but this incident highlights the importance of choosing wallets carefully and not blindly trusting providers. Backup solutions and technical knowledge are crucial.

Full Transcript — Download SRT & Markdown

Speaker A

Right. Unfortunately, the hacks continue of people's Bitcoin getting stolen, but I want to offer a different perspective on this video. There was definitely a moment of higher emotion, and of course, the people that have lost close to $110 million are still going to be feeling that emotion.

Speaker A

are still going to be feeling that emotion. Um, and I just want to offer kind of a thought on what's going on here in the wider market and uh my kind of evaluation of the wider market at this point. Um, but I do want to

Speaker A

I just want to offer kind of a thought on what's going on here in the wider market and my kind of evaluation of the wider market at this point. But I do want to highlight that the hacks do continue and people are not aware that this hack is even going on.

Speaker A

MarkV. I think I'm okay." And that is not the way to be taking this. If you have any Bitcoin on any cold card, and again, I'm only talking to the normal people. If you're someone who's a technical expert, someone who's uh, you

Speaker A

I had a friend call me and say, "Hey, this is kind of crazy." And I said, "Yeah, how's your Bitcoin?" He goes, "Oh, I've got a MarkV. I think I'm okay." And that is not the way to be taking this. If you have any Bitcoin on any cold card, and again, I'm only talking to the normal people.

Speaker A

are a normal person like myself who is listening to the Bitcoiners about what to do here uh and ended up with a cold card, take the Bitcoin off the cold card. No matter what cold card you have at this

Speaker A

If you're someone who's a technical expert, someone who can read code, can take the source code and flash the firmware and do all these fancy things that the nerds do, then do what you're going to do. If you're not one of those people and you are a normal person like myself who is listening to the Bitcoiners about what to do here and ended up with a cold card, take the Bitcoin off the cold card.

Speaker A

And the reality is that those people who, you know, have got IBIT open up their broker accounts and the IBIT's still there, right? So, look, no matter what all these Bitcoiners are saying, they're all out here, they're all trying to say all of this is safe

Speaker A

No matter what cold card you have at this point, it's not worth it. In fact, I've been called a bunch of different things as this has been unfolding. One of those things is, you know, I've been called a fear-mongerer and a fudder and all these other things.

Speaker A

That's not what's happened here. Right? I don't want it to get confused where we are talking when I mention self-custody, people think that the actual Bitcoin is broken. Bitcoin is not broken here.

Speaker A

The reality is that those people who have got IBIT open their broker accounts and the IBIT's still there, right? So, look, no matter what all these Bitcoiners are saying, they're all out here trying to say all of this is safe and everything like that. I want to highlight a couple important points.

Speaker A

is that the way that the the key for the vault was generated, it was pretty easy to guess that key. That's the issue here, right? That's my understanding of as a non- tech person of the issue here.

Speaker A

The built-in self-custody of the Bitcoin core code has not been affected. That's not what's happened here. I don't want it to get confused where we are talking when I mention self-custody, people think that the actual Bitcoin is broken. Bitcoin is not broken here.

Speaker A

So, a lot of these a lot of the Bitcoiners are going losing their minds because they think, you know, the self-custody dream is over. Um and and really it's not about that. What's going on here is that there is a threat to

Speaker A

What's happened here is that a particular cold wallet has had an issue that was exploited to take people's Bitcoin off of the vault. It's like, you know, the Bitcoin was in the vault. The vault was perfectly safe. The problem is that the way that the key for the vault was generated, it was pretty easy to guess that key.

Speaker A

single best wallet for self-custody got it wrong. Right. They got it wrong. For all this entire time, they were talking about don't trust, verify, all this other stuff while basically trusting.

Speaker A

That's the issue here, right? That's my understanding as a non-tech person of the issue here. The problem with that is we don't know how long this goes.

Speaker A

Um, for the brand and from a safety perspective, if I were you and I had a cold card or any product by Coin Kite, I would take my Bitcoin off of that product. Now, the question is, where do you put it? One of

Speaker A

So, a lot of these Bitcoiners are going losing their minds because they think the self-custody dream is over. And really, it's not about that. What's going on here is that there is a threat to this particular wallet, right? And that wallet is any product, as far as I'm concerned, by Coin Kite.

Speaker A

And so I started speaking to some of the technical guys that do have the actual ability. I just ignore the Bitcoiners.

Speaker A

This was a five-year-old bug. No one caught it. All of the Bitcoiners that were lauding about how this particular wallet was the single best wallet for self-custody got it wrong. Right? They got it wrong. For all this entire time, they were talking about don't trust, verify, all this other stuff while basically trusting.

Speaker A

They're actually running X spaces 24/7 for the last four or five days helping people move and protect their Bitcoin. So they're phenomenal guys. One of them I spoke to his name is Portland Hodddle on on X.

Speaker A

Okay. So, they've taken a huge reputational hit. Of course, Coin Kite, you know, it's over at this point.

Speaker A

because nothing's ever 100% guaranteed. What can you guarantee beyond a reasonable doubt is safe at this point?

Speaker A

For the brand and from a safety perspective, if I were you and I had a cold card or any product by Coin Kite, I would take my Bitcoin off of that product. Now, the question is, where do you put it? One of the most crazy things that I've experienced is all these people that are affected didn't have a backup solution.

Speaker A

The guy that can actually read the code, the guy that has been sitting there for four or five days helping people read through this, the guy that's been pushing every single wallet code through LLM and and trying to trying to figure

Speaker A

And so I started speaking to some of the technical guys that do have the actual ability. I just ignore the Bitcoiners. Let me talk to the actual technical guys, you know, on X, and luckily I have access to some of these people to speak to directly, and these guys are phenomenal, right?

Speaker A

know what to recommend and I can't make a recommendation right now in fact moving on to the exchanges is probably going to be the safest thing to do right now that is someone who's actually reading the code not just one of the

Speaker A

They're actually running X spaces 24/7 for the last four or five days helping people move and protect their Bitcoin. So they're phenomenal guys. One of them I spoke to, his name is Portland Hodddle on X.

Speaker A

of Bitcoin would be broken. What is at question here is the safety and security of any of these wallets that you've been sold and that I've been sold. Right? And unfortunately, all of these influencers that were recommending these wallets

Speaker A

And my simple question to any of the Bitcoiners, including the tech people, anyone at this point is, you know, what wallet are you recommending and can you guarantee beyond a reasonable doubt—because nothing's ever 100% guaranteed—what can you guarantee beyond a reasonable doubt is safe at this point?

Speaker A

my response to a lot of these people is, you know, while you think you're being smart, you're talking to people, you know, that are doctors, that are teachers, that are police officers, that are just normal people doing normal

Speaker A

Now, the Bitcoiners are saying Trezor, Ledger, all this other stuff, BitKey, all this other stuff, whatever. Do what you got to do.

Speaker A

Because somebody left the vault door open. It's not like the vault's not safe, but if you leave the [ __ ] door open, then you know, no matter how safe the vault is, it's going to get it's going to get stolen. So, look, at this

Speaker A

The guy that can actually read the code, the guy that has been sitting there for four or five days helping people read through this, the guy that's been pushing every single wallet code through LLM and trying to figure this out for people to understand where this happened, verbatim quoting now because it shook me when he said this and it made me freak out, which he said, "I am shook to my core and I don't know what to recommend and I can't make a recommendation right now. In fact, moving on to the exchanges is probably going to be the safest thing to do right now."

Speaker A

I'm trying to work on a solution for that. Hopefully, we'll have So, subscribe to the channel for that. Um, and the main thing really that I wanted to do this video for because I've been saying that the self-custody narrative

Speaker A

That is someone who's actually reading the code, not just one of the Bitcoiners, the new guys that are lauding about Bitcoin. So again, I want to highlight we're not talking about the core functionality of self-custody here, right? That built into the Bitcoin code is safe. If that was broken, the whole of Bitcoin would be broken.

Speaker A

of like anger and and frustration and all this because I've got people in my real life that have lost their life savings as a result of this hack and all of these recommendations by the Bitcoin.

Speaker A

What is at question here is the safety and security of any of these wallets that you've been sold and that I've been sold. Right? And unfortunately, all of these influencers that were recommending these wallets have messed up. That's they just messed up, right?

Speaker A

far as I'm concerned. So, you know, you know, that's what I'm doing. Is that my ongoing recommendation? I don't know.

Speaker A

They didn't take their responsibility seriously. They took the money and they didn't take their responsibility seriously. And it is what it is.

Speaker A

we're in the middle of having this debate, right, and shouting at these people and whatever else cuz you bear in mind, you've still got the Bitcoiners, right? These morons that are out here basically saying self these wallets are

Speaker A

My response to a lot of these people is, you know, while you think you're being smart, you're talking to people that are doctors, that are teachers, that are police officers, that are just normal people doing normal daily jobs, waking up, figuring out that potentially their entire life savings that they were told to put onto this thing that they bought is completely at risk.

Speaker A

They're trying to tell normal people that if you roll enough [ __ ] dice to generate the password, then it's still safe. And while that might be technically true, I don't give a [ __ ] [laughter] I don't care. I'm not willing

Speaker A

Because somebody left the vault door open. It's not like the vault's not safe, but if you leave the door open, then no matter how safe the vault is, it's going to get stolen. So, look, at this point, find a backup.

Speaker A

nerds at Black Rockck, Coinbase, Fidelity, and all these places that are singularly focused on a daily basis to keep my money safe.

Speaker A

Again, I said I'm in conversation. There's been a lot of people reaching out to me saying, "Hey, listen. Look, I want to get the heck out of this and into the ETFs." And so I'm trying to work on a solution for that. Hopefully, we'll have something. So, subscribe to the channel for that.

Speaker A

drag a PDF into chat GPT. I'm assuming it works pretty similar. You drag the code into the LLM and say find some bugs. They couldn't do that part, right?

Speaker A

The main thing really that I wanted to do this video for is because I've been saying that the self-custody narrative is kind of dead since the ETFs were even announced. And of course, I just seem to get proven right over time with what's going on here.

Speaker A

my money safe. And if anything fails, it's backed by a $14 trillion um asset manager that has a reputational risk and is accountable to all of these other uh institutions. cuz right now Coin Kite is accountable to nobody,

Speaker A

This was the thing that shocked me. I had a lot of anger and frustration and all this because I've got people in my real life that have lost their life savings as a result of this hack and all of these recommendations by the Bitcoiners.

Speaker A

price is holding steady." And that kind of like stopped me in the flow of what I was doing while listening to this conversation. And I thought, I'm sitting here trying to convince people to the reality of the fact that

Speaker A

I've never recommended cold card. I've actually never recommended a single wallet. I've recommended a multi-IG solution. Right? So, I said that for my stack, for my portion of my stack that's in self-custody, I use Casa.

Speaker A

Talking about the narrative of having a [ __ ] cold wallet hanging around your neck, walking around going, I'm a Bitcoiner.

Speaker A

That is in current review right now as far as I'm concerned. So, you know, that's what I'm doing. Is that my ong

Speaker A

saying themselves, but the Bitcoin larbers are walking around going, "No, these wallets are still safe." Right? I'm trying to say that.

Speaker A

And the [ __ ] price is up, not down. 5 years ago, if this had happened, this would have been 10% intraday down, 20% by the end of the day, maybe 30%. Your Bitcoin got hacked, your Bitcoin got hacked. You know how

Speaker A

the media is, even though the Bitcoin didn't get hacked, the wallet was faulty, they would spin it like that.

Speaker A

And right now, the price is up. This was yesterday, the price was up, right? And I thought about that for a split second and it kind of hit me that, you know, I'm trying to convince them of this and they're too stupid to realize

Speaker A

that the price is telling them that this doesn't matter anymore. Bitcoin is too big for this now. Bitcoin doesn't care about the idea of walking around with a cold wallet. Nobody cares. The new capital doesn't care. It's in insured

Speaker A

custody in institutional grade custody. It's in ETFs. it. A million and 1.3 million coins have been transferred over from retail hands. The retails have already sold. None of this [ __ ] matters.

Speaker A

It wasn't even a thought afterthought for the price of Bitcoin. The fact that $110 million hack had happened.

Speaker A

And that made me realize we're in this [ __ ] bubble, right? We're in this bubble of these Bitcoiners that think that their ability to walk around with this cold wallet and buy their coffees and all this other stuff is somehow

Speaker A

important and they don't realize that the actual value of Bitcoin is pristine store of of value. When I speak to the private banks and they tell me that this is the perfect private banking asset, right? When they come up to me and say,

Speaker A

"Okay, I've been watching your videos and we completely agree this is a perfect private banking asset." you realize how far Bitcoin has come and moved on from this retail, you know, this this retail crowd of anarchists that think that they're fighting some

Speaker A

kind of system. And that made me extremely [ __ ] bullish for Bitcoin. And I was proud of Bitcoin and I was proud of what's what's what's happening and happened. And yeah, you know, this will only make things

Speaker A

stronger and a wallet will emerge that is super safe. It will force people to take their code and make it better. But for right now, think of a backup. At least have a backup in place. Whether the backup is even Fidelity Digital

Speaker A

Assets or Coinbase with the vault set up with the eight levels of security, just have a backup ready in case one of these wallets goes goes, you know, goes tits up over the next few days because now that the cat is out the bag, these these

Speaker A

guys have been basically, you know, asleep at the wheel and every single hacker on Earth is going to be running code through LLMs, the latest ones that come out trying to find the vulnerability. And I don't know about

Speaker A

you, but I personally do not want to take, you know, risks with my net worth for somebody's sideshow project for a company like Coite making, I don't know, $35 million a year. What are we talking about? Right? Uh, and of course, I'm

Speaker A

going to re-evaluate my my my overall holding the tiny bit that's in, you know, quote unquote self-custody with with Multisig. I'm going to I'm re-evaluating that right now. looking at looking at, you know, institutional options. So, I'll let you know what

Speaker A

happens with that. But again, good news coming hopefully soon on uh the inind conversions. Of course, it's it's going to be for people that have a reasonable amount of net worth. I mean, to put it into perspective, 6 months ago, in kind

Speaker A

conversion, you know, for some of these ETFs was a minimum trade of $50 million.

Speaker A

We've got that significantly down. Uh but it's still a lot of money. It's only going to it's only going to help a small portion of people, but for those people, it will basically avoid the cap gains tax or any tax that you have on the

Speaker A

conversion of the asset. So, subscribe to that. But again, please plan, please protect yourself, and please realize that this is actually quite [ __ ] bullish for Bitcoin because these people have lost the narrative.

Speaker A

It's overb. You know who has the narrative? Big Bitcoin has the narrative. Black Rockck has the narrative. Coinbase has the narrative.

Speaker A

MSTR has the narrative. They're in control and that means that this is this is, you know, no longer in control of the people that thought that they were so important. It's like the gold bugs when I was in the gold space saying, you

Speaker A

know, the way we're going to do this is we're going to all going to roll around with little bricks of gold. And when you want something, you just shave a little bit off and give it and give it. And

Speaker A

that's how that's how this trade is. Ignore all of that. This is very very bullish now for Bitcoin. The fact that the price didn't go down, the fact that the price wasn't affected is extremely bullish. And I'm even more uh bullish

Speaker A

than I was uh four or five days ago before this hack happened. Because ultimately, there's always only three rules to Bitcoin. Step number one, you buy Bitcoin. Step number two, shut the [ __ ] up. And step number three, you get

Speaker A

fabulously wealthy.

Topics:Bitcoin hackscold wallet vulnerabilityCoin Kiteself-custodyBitcoin securitycold cardwallet bugcrypto safetyBitcoin theftcrypto custody

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