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

[Katherine Thomas]

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?

 

[Snowy]

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.

 

[SUNSHINE]

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!

 

[Aesthatic girl]

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.

 

[Alison]

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.

 

[Arizona]

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.

 

[jasper]

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.

 

[Harry]

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.

 

[James Henry]

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.

 

[peterjohn]

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.

 

[Daruk]

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.

 

[Ruksh]

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.

 

[Munashak]

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.

 

[SUNSHINE]

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.

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.