Blockaid CEO After Coldcard Lesson: Private Key is Crypto’s ‘Original Sin’, AI Threat Looming
Blockaid CEO Ido Ben-Natan argues that following the security vulnerability in Coldcard wallets, the traditional security model based on private keys has now become a “single point of failure.”
The recent security breach at Bitcoin (BTC) hardware wallet manufacturer Coldcard, which led to losses exceeding $111 million, has sparked a deep debate in the crypto world. In an interview on Friday, Blockaid CEO Ido Ben-Natan characterized this situation as the industry’s “original sin,” emphasizing that simply putting assets in a hardware wallet and forgetting about them is no longer enough. According to Ben-Natan, the absolute control provided by private keys also constitutes the weakest link in the system.
The latest report published by Blockaid reveals the extent of the danger with striking data. Approximately 75% of cryptocurrency thefts that occurred in the first half of 2026 stemmed directly from private key breaches. This period, during which over $1 billion in assets were stolen, was recorded as the “most hacked half-year” in history. Much like the red strikes on the lock symbol in the image, even the systems considered most secure can suffer heavy damage due to this structural vulnerability.
New Threats in AI and Crypto Security
Ben-Natan warns that cyberattacks will become much more sophisticated with the development of AI tools. Stating that cryptocurrencies play the role of the “canary in the coal mine” in cybersecurity due to the ability to quickly cash out stolen assets, the CEO expresses that we are entering an era where everyone will have the world’s best hackers at their fingertips. This situation leaves traditional protection methods more vulnerable than ever.
Arguing that investors must urgently escape the “set and forget” mentality, Ben-Natan reminds us that security is a dynamic process. According to the CEO, users must either remain alert in a state of constant paranoia or delegate security decisions to professional external sources. The Coldcard incident, which affected more than 7,000 addresses, proves that even hardware wallets are not an impregnable fortress on their own.