TLDR
- David Schwartz proposed a split-control system for secure Bitcoin cold storage and inheritance.
- The plan uses two hardware wallets configured with the same 24-word seed phrase and PIN.
- Two relatives would hold the devices, while two trusted friends would separately hold the PIN.
- No single person could access the Bitcoin without cooperation from another trusted party.
- The Coldcard wallet hack renewed debate over hardware wallets, paper storage, and seed phrase security.
XRP Ledger co-creator David Schwartz has proposed a Bitcoin storage plan after the Coldcard wallet hack renewed concerns about hardware security. His approach divides control between relatives and trusted friends, limiting access during the owner’s lifetime while supporting inheritance.
The proposal uses hardware wallets, one shared seed phrase, and a separated PIN. Schwartz compared the structure to a “nuclear briefcase” because no single person can unlock the funds alone.
Coldcard Wallet Hack Fuels Storage Debate
The Coldcard wallet hack reportedly began with a firmware flaw that created predictable seed phrases. Attackers then drained more than 4,500 addresses and stole 1,367 BTC, valued near $89 million.
The theft led some users to support paper wallets again. Paper records cannot face remote attacks, but they remain exposed to fire, theft, water damage, and accidental loss.
Schwartz Splits Control Across Trusted Parties
Schwartz suggested setting up two extra hardware wallets with the same 24-word recovery phrase. The owner would also use the same PIN on both devices and keep the main wallet separately.
How do you handle inheritance? How do you handle theft/loss? Hardware wallets solve both those problems.
— David 'JoelKatz' Schwartz (@JoelKatz) August 2, 2026
Each extra device would go to a different relative. Two unrelated trusted friends would receive the PIN, but they would not hold the wallets or know the recovery phrase.
Bitcoin Inheritance Without Single-Party Access
Under the plan, relatives cannot move the Bitcoin without the PIN. The friends also cannot access the funds because they do not hold the devices. This separation blocks any one party from acting alone.
After the owner’s death, the friends would provide the PIN to the relatives. The heirs could then unlock the devices and access the Bitcoin without relying on an exchange, lawyer, or online account.
Schwartz mentioned the SecuX W20 as a suitable device. The model supports hardware-based storage and allows users to keep private keys away from internet-connected systems.
The strategy focuses on reducing theft risk, device failure, and inheritance problems. It also avoids placing full control with one relative, friend, or physical document.
The Coldcard wallet hack has pushed wallet security back into focus. Schwartz’s plan offers a layered system built around shared responsibility, physical separation, and access rules.
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