$88 Million Gone From Wallets That Were Never Online

A five-year-old firmware bug quietly turned "cold storage" into a guessing game, and roughly $88 million in Bitcoin walked out the door without anyone touching a device.

Joel Comm and Travis Wright open year ten of The Bad Crypto Podcast with the Coldcard entropy flaw: a March 2021 build error routed seed generation through a predictable software fallback instead of the hardware random number generator, leaving affected seeds with about 40 bits of entropy instead of 128. Galaxy Research mapped the first sweep — 1,196 addresses drained in 41 minutes — and later waves pushed the total past 4,500 addresses. Updating the firmware does not fix a seed that was already generated.

Also on this episode: BitGo CEO Mike Belshe posts a wallet holding 100 BTC and dares Anthropic's Claude to take it.

Strategy sells another 1,638 Bitcoin to cover STRC preferred dividends while sitting on $10.9 billion in unrealized losses.

Trump's executive orders move the federal post-quantum deadline to 2031, and BIP-361 raises the question of what happens to Satoshi's coins.

Truth Social starts selling early access to the President's posts.

And American Bitcoin posts a $57.2 million quarterly loss while growing its treasury to 8,002 BTC.

Then the hosts swap notes on what they've been building. Travis is turning the marketing canon into installable AI skills at MRKT.NG, finished two screenplays that sat in a drawer for twenty-six years, and rebuilt his site around a news-reading audio agent and a council of nine AI advisors.

Joel made a short film, wrote and produced an original song with AI, and makes the case that "slop" is a skill issue — the work is in the directing, not the prompting.

Closes with a practical tutorial on building character reference sheets so your AI-generated characters stop changing faces between shots. This episode is for educational, informational, and entertainment purposes only. It is not financial, investment, or trading advice.

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