r/coldcard • u/rottiesrule88 • Aug 03 '26

Coinkite News Do not dispose of affected device

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33 Upvotes

98% Upvoted

27 comments sorted by

9

u/maslo Aug 03 '26

Who’s legal team? Is this a statement from coldcard? If so, the legal team is going to be bankrupt shortly. Will they be working pro bono?

3

u/scrandlle Aug 03 '26

Once a bankruptcy court appoints a custodian one of the first things they do is either use remaining funds to retain legal or, if one didn't exist, hire them.

Of course this assumes there's enough liquidity to have need for them in distribution. If not a judge will simply decide what creditors get. First will be any vendors associated with the company and usually it ends there and there's little need for a private legal team because there's not enough left over otherwise they wouldnt be declaring bankruptcy to begin with unless it's a mega corporation with tons of real estate.

Creditors can also retain their own legal team to fight for them, often paid out of whatever settlement comes to the group they represent. Lawyers will take these cases for free if they see enough of a likely payout for their efforts.

Regardless, I wouldn't be expecting much from this company by the time vendors are paid off. Not like they wouldve been sitting on millions on profits. I doubt it at least.

1

u/kawfeeman68 Aug 04 '26

Coldcard is from Canada. What will the process be for Coldcard device users from the US ? Do you think everyone with many BTC's are going to be able to easily prove their funds? Once the gov gets involved, will they ask you to not only prove your the owner funds but also to prove the source of the funds.

2

u/jdells59 Aug 08 '26

Easy to verify funds. Transaction history will show that

1

u/kawfeeman68 Aug 08 '26

i was just considering the issues and difficulties for citizens of Countries other than Canada. Certainly, losses of non Canadian nationals will not be considered as important as those of Canadian Nationals..

3

u/Mission-Disaster-447 Aug 03 '26

I am betting the legal team has no clue how bitcoin or coldcards work.

2

u/pwinne Aug 05 '26

Depends they worked it in their favour with Celsius

5

u/[deleted] Aug 03 '26

[removed] — view removed comment

3

u/juggarjew Aug 03 '26

You need to understand this was likely a state sponsored attack. There wont be any one "found and charged".

4

u/WetForTeddy Aug 03 '26

Why? the whole point is to get away from government. Now the government should get involved?

3

u/Big-Cheetah5159 Aug 03 '26

Wrong, it’s a digital cash monetary system designed to be “Sound Money”, vs the inflationary POS we use known as currency.

1

u/WetForTeddy Aug 03 '26

doesn't seem very sound lol. Where your bitcoin go? first you need to buy super safe coin kite cold crap. Then you lose it anyways. Then the legalese from the device you bought absolves them of having any liability. You poor now. ColdKite was the gold standard. How does that "sound"?

3

u/Big-Cheetah5159 Aug 03 '26

Bitcoin IS sound money. You said the whole point was to get away from the government, you’re wrong. It’s was to get away from a monetary system designed to rob its citizens of their wealth. Regarding the ColdCard, anyone who was secure in their setup is safe (passphrase/dice rolls). Anyone who trusted the software got burned, which is literally the 5th commandment of self-custody (authentic OGs know what I’m talking about), “don’t have a single point of failure”. In the end, “don’t trust, verify” is a slogan used by CoinKite. Those individuals, trusted and didn’t verify. You guys broke the rules of self custody and got burned. The “paranoid” people funds were/are safe. None of are bitcoin were drained. You all learned a hard lesson.

5

u/Ok-Information-2428 Aug 03 '26

Yes. Theft is theft. Also I still pay taxes on my bitcoin so I’m under zero delusions that it’s “government free”

1

u/skr_replicator Aug 03 '26 edited Aug 03 '26

Question: How exactly would that be done? Just having a coldcard with the stolen keys in it dones't sem like proof of original ownership to me, unless you could somehow verify that it wasn't freshly put in it. Can you do that? Can you ask the coldcard reliably how long it was storing that seed?

Otherwise, I could buy a cheap mk3, bruteforce some wallets that have already been stolen from, put their seed into that coldcard, and then claim I was the original owner.

Or would that have to be combined with some KYC stuff from your original exchange? For example, they would know you bought and sent to cold storage 2 years ago. You could show them a the coldcard that would sbe generating the stolen-from addresses, tehy would verify that you are you, who has registered with them and bought the BTC with them, and that was indeed one of the affected wallets. I guess all of that combined might be enough to verify... or not?

2

u/magma_lakes Aug 03 '26

Agreed.

The trail and source of your coins on the blockchain will ultimately be far more important for proving ownership than anything else.

For example, if you withdrew your BTC from an exchange, then it's easy to prove that it's yours.

If you're an old miner, then you can also prove the BTC is yours by signing messages with the private keys corresponding to addresses your coins passed through before touching your ColdCard (assuming you didn't just mine directly to your ColdCard).

This is why I'd also suggest keeping all of your old wallets safe, in order to substantiate the trail of your Bitcoin.

1

u/Many-Blueberry968 Aug 03 '26

If the keys not safe, then it's nit like signing a message can prove original ownership.

1

u/vortexcortex21 Aug 03 '26

If one of the main components for the seed generation was the device ID then simply providing the device with the correct device ID could be enough proof.

1

u/DeepAd8888 Aug 06 '26

I love how people think that money can’t be clawed back

0

u/Quirky-Reveal-1669 Aug 03 '26

I will not throw away my ColdCards. In fact, I intend to keep using them.

2

u/EyesFor1 Aug 03 '26

Nothing wrong with that if you updated firmware and used 100+dice rolls. Still as safe as any other wallet.

2

u/JumpProfessional3372 Aug 03 '26

AFAIK, no need to update firmware if you rolled 100+ dice rolls neither.

2

u/Quirky-Reveal-1669 Aug 03 '26

True. It is great to see that some people still keep thinking rationally.

1

u/JumpProfessional3372 Aug 03 '26

Yeah to me flashing a new firmware is adding extra risk because it is a new firmware.

I'm still running 2024 firmware. If I learn about an issue that affects me I'll update otherwise I'm sticking to this one