Is Self-Custody Still Safe? Wallet Breaches on the Rise

Katherine Thomas

Katherine Thomas

Active member
In 2025 alone, we’ve seen over $400M lost to wallet exploits – even trusted ones like Ledger Live had phishing issues. What’s the safest combo today? Cold storage + multisig? Or is a smart contract wallet like Safe the future?
 
Even with all the “secure” options out there, exploits keep piling up. Cold storage and multisig help, but they’re not foolproof—user error and social engineering still break things. Smart wallets like Safe offer hope, but we’re trading trust in hardware for trust in code. The risks just keep evolving.
 
Crazy how even the big names aren’t immune to phishing in 2025. Personally, I lean toward cold storage with multisig for serious funds........rock solid. But smart contract wallets like Safe are getting better fast, especially with built in recovery and automation. Might be time to split funds and use both!
 
Despite the setbacks, the rise of smart contract wallets like Safe signals a turning point in crypto security. Combining cold storage with multisig or smart automation gives users more control than ever. With better UX and security innovation, 2025 could be the year wallets finally become both safe and user-friendly.
 
Really interesting point it's wild how even the most trusted platforms have had issues this year. I've been wondering if cold storage with multisig is still the gold standard or if smart contract wallets like Safe are finally mature enough to handle serious custody needs. The trade-offs between control, convenience, and security feel more complex than ever right now.
 
Cold storage combined with multisig is still considered one of the most secure setups for high-value holdings, especially for institutional or long-term storage. That said, smart contract wallets like Safe are gaining traction for their flexibility, upgradeability, and built-in recovery features. Each approach has trade-offs in terms of usability, attack surface, and custody risk. It’s worth assessing based on individual threat models and operational needs.
 
The scale of losses this year underscores how critical it is to rethink custody strategies. Cold storage combined with multisig remains one of the most battle-tested approaches, offering both offline protection and distributed control. That said, smart contract wallets like Safe are rapidly maturing, especially with features like social recovery and modular security policies. The key will be balancing usability with uncompromising security, and for many, a hybrid model might offer the best resilience until on-chain solutions prove themselves at scale.
 
Security in 2025 is more critical than ever, and you're right to question the best setup. Cold storage combined with multisig still offers rock-solid protection for long-term holdings. But smart contract wallets like Safe are innovating fast—bringing flexibility, recovery options, and real usability to the table. It's not about one-size-fits-all anymore, but choosing the right combo based on your risk level. Smart users are blending both worlds for maximum peace of mind.
 
The rise in wallet exploits in 2025 is a harsh reminder that even "trusted" setups aren't immune. Cold storage plus multisig is still one of the most secure combos, especially for long-term holding. But smart contract wallets like Safe are evolving fast—with features like social recovery and granular permissions, they’re making security more user-friendly. For active crypto users, this hybrid approach might be the future. Projects like SUBBD Token understand the importance of security and are building with these principles in mind. It's reassuring to support a token that prioritizes both innovation and safety.
 
With over $400M lost in 2025, it’s clear no single wallet type is bulletproof anymore. Cold storage + multisig remains the gold standard for long-term security, especially for high-value holdings. But smart contract wallets like Safe are catching up fast, offering features like social recovery and customizable access controls. The trade-off is added complexity and potential smart contract bugs. Ideally, a hybrid setup—cold storage for HODLing, smart wallets for daily use—balances safety and flexibility. As the tech matures, smart contract wallets could well become the default.
 
Cold storage combined with multisig remains one of the most battle-tested setups for securing significant funds, especially for long-term holding and treasury management. That said, smart contract wallets like Safe are closing the gap quickly with features like social recovery, spending limits, and programmable access control, offering flexibility that traditional wallets lack. The key trade-off is between simplicity and control versus advanced security configurations and potential smart contract risk. Diversifying custody approaches based on use case active trading, DAO treasury, personal savings — is becoming a best practice in today’s threat landscape.
 
Really appreciate you bringing this up it’s a crucial conversation for the space right now. The pace and sophistication of exploits this year have been alarming. Cold storage combined with multisig still feels like the most battle-tested approach for meaningful amounts, especially for long-term holds. That said, smart contract wallets like Safe are evolving fast and offering flexibility that traditional setups can’t match. It’s encouraging to see both sides of the security stack improving.
 
Great point security in crypto has never been more important. Cold storage combined with multisig is still one of the most battle-tested setups for high-value holdings. That said, smart contract wallets like Safe are making huge strides in usability and flexible security controls. It’s encouraging to see the space evolve with more options that can meet different risk profiles. Staying informed and layered in your approach is definitely the way forward.
 
Snowy said:
Even with all the “secure” options out there, exploits keep piling up. Cold storage and multisig help, but they’re not foolproof—user error and social engineering still break things. Smart wallets like Safe offer hope, but we’re trading trust in hardware for trust in code. The risks just keep evolving.
Click to expand...
Exactly—no system is bulletproof when human error and clever exploits are always evolving. Smart wallets like Safe show promise, but it’s clear we need ongoing education and layered defenses to truly stay ahead.
 
The rise in wallet exploits this year underscores the persistent risks in both custodial and non-custodial solutions. While cold storage combined with multisig remains one of the most battle-tested security models, its trade-offs in user experience and accessibility limit its practicality for many. Smart contract wallets like Safe offer a compelling middle ground with programmable security policies, social recovery, and multisig-like features baked into the protocol layer. However, they still carry smart contract risk and dependence on the underlying chain's security. The future likely lies in layered security models that blend hardware isolation, on-chain programmable controls, and robust user education to mitigate both technical and social attack vectors.
 
Great to see some strong rebounds off those oversold RSI levels. If this momentum holds, we could be setting the stage for a broader shift in market sentiment. Keeping an eye on SOL, AVAX, and INJ next they’re approaching similar setups and could be primed for sharp moves on the next market impulse.
 
Wild times in crypto security this year feels like every week there's a new cautionary tale. Cold storage multisig still feels like the sober, belt-and-suspenders option, but smart contract wallets like Safe are looking better with every upgrade. Honestly, might just bury my seed phrase in the backyard at this point.
 
Cold storage and multisig are battle-tested, but let’s not pretend they’re bulletproof human error and social engineering still wreck setups daily. Smart contract wallets like Safe are promising, but they're only as secure as their code and governance. The real threat isn’t the tech, it’s the complacency in thinking any single combo is safe enough in a space that evolves faster than most people can keep up.
 
It’s sobering to realize how even established names in the space remain vulnerable. The pace of exploits this year really highlights how fragile our current custody solutions still are. Cold storage paired with multisig feels like the most battle-tested option for now, though it comes with its own trade-offs in usability. Smart contract wallets like Safe show a lot of promise, especially with social recovery and programmable permissions, but the surface area for smart contract risk is something we can’t ignore yet. The future might belong to hybrid models that balance decentralization, security, and flexibility in a way we haven’t fully achieved today.
 
Absolutely loving this discussion it's such a crucial topic right now. Cold storage combined with multisig is still one of the most battle-tested setups for serious capital protection, but smart contract wallets like Safe are making huge strides in usability and flexible security. The future feels like a hybrid approach where on-chain programmability meets rock-solid offline security. Stoked to see where the next generation of wallet tech takes us.
 
You must log in or register to reply here.
Back
Top Bottom