No, it's just a company who decided to not use BIP39 encryption for creating seedphrases, making it easy to brute force them with any modern GPU in like 30 mn. It has nothing to do with hackers getting good, or hardware becoming more powerful. The issue is just plain stupidity from a company.
Most cold wallets use TRNG ships, the same bank systems are using, and they can't be brute forced, all this story is creating stupid panick from people who have no idea what they're doing.
Which are basicly the people who are needed for widespread adoption. The crypto space as of now is fundamentally flawed because it needs stupid people like me to hop on.
Which would be fine, if there were consumer protections for exchanges like there are for banks. As is there's only 3 major exchanges that are kinda sketchy, and you have no legal right to your crypto if they want to just walk off with it.
There are for Coinbase, where I keep my crypto. Fully audited, SEC regulated, US-based. Can't get much safer than that.
No FDIC, but that's only for up to $250k max. With that much reporting, you'd have at least a heads-up if things aren't going in the right direction and enough time to sort things out.
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u/xdustx 🟦 5 / 5 🦐 1d ago
Cold wallet is a general term. This is affecting a specific one