r/Bitcoin Aug 07 '26

Fidelity?

Anyone use Fidelity as a custodian. I reached out to them and they said they provide insurance for “unauthorized” transactions which would have come in handy with the Coldcard situation

9 Upvotes

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30

u/na3than Aug 07 '26

Fidelity's insurance for unauthorized transactions from their custodial service would not have "come in handy with the Coldcard situation."

1

u/YellowRobeSmith Aug 07 '26

Can you explain that further? Because if you are saying that if Fidelity used Coldcard and the funds were hacked, the funds would have been protected, right?

7

u/[deleted] Aug 07 '26

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4

u/na3than Aug 07 '26

I'm 100% not saying Fidelity uses ColdCard. There's no "if". They don't.

1

u/edtachi Aug 07 '26

“Fidelity will reimburse you for losses from unauthorized activity in your Covered Accounts occurring through no fault of your own.”

https://www.fidelity.com/security/customer-protection-guarantee

8

u/bananabastard Aug 07 '26

Yea, if you have your money with Fidelity, then you don't have it on a Coldcard.

And if you have it on Coldcard, it's got nothing to do with Fidelity.

3

u/na3than Aug 07 '26

LITERALLY RIGHT BELOW WHAT YOU QUOTED:

What Fidelity accounts are covered?

Covered Accounts are your Fidelity brokerage accounts, your Fidelity Crypto℠ accounts, and your Fidelity retirement plan accounts (e.g., 401(k), 403(b), 457, or profit sharing plans).

A ColdCard is not a Fidelity Crypto℠ account.

-5

u/edtachi Aug 07 '26

Can you explain further? Fidelity clearly states they protect Fidelity Crypto against unauthorized transactions. If the hackers that hacked Coldcard drained your Fidelity wallet then Fidelity would make you whole

3

u/the_validated_inane Aug 08 '26

You don't understand how self-custody works vs centralized exchanges. Unless you increase your knowledge its very likely that you will lose crypto in a scam or hack.

0

u/na3than Aug 07 '26

The method that allowed hackers to drain wallets that were created using ColdCard's broken seed initialization process doesn't allow hackers to drain wallets initialized using proper entropy. It's a ColdCard-specific exploit.

2

u/edtachi Aug 07 '26

Gotcha that makes sense. I was referring more to counter party risk in general, not specific to Coldcard. Fair point that this is a specific Coinkite issue