According to CoinMeta, well-known Bitcoin developer Peter Todd warns that single-signature wallets pose security risks, especially after technical defects were discovered in cold storage devices, which led to more than 500 Bitcoin addresses being completely emptied by hackers. In one automated attack, hackers transferred 594.48 BTC (approximately $38.3 million) to a single wallet. Todd stated that this incident once again confirms his long-standing doubts about commercial cryptographic devices. He pointed out that wallet security relies entirely on the randomness of the mnemonic phrase generation process, but cold storage firmware has not been functioning properly since March 2021, resulting in vulnerabilities in almost all models. Experts advise users to immediately generate new mnemonics on third-party hardware and transfer all funds to new addresses. Only users who added an additional BIP-39 password phrase during initial setup can remain protected.