Why Protecting Your Cold Wallet Is a Big Deal
If youâre holding crypto, you already know the golden rule: âNot your keys, not your coins.â But just having a cold wallet isnât enoughâyou need to protect it properly. Letâs talk about why this matters and how to make sure your hard-earned Bitcoin, Ethereum, or Pepe coins stay safe.
Crypto Exchange Hacks: A History of Disaster
If history has taught us anything, itâs that leaving your crypto on an exchange is risky business. Over the years, billions of dollars worth of Bitcoin, Ethereum, and other cryptocurrencies have been lost due to exchange hacks, fraud, and mismanagement. Here are some of the biggest disasters in crypto history and what we can learn from them.
đ¨ Exchange hacks are on the rise â donât risk your funds! Get a hardware wallet now and take control of your crypto security.
1. Mt. Gox (2014) â $450 Million Lost
Mt. Gox was once the largest Bitcoin exchange in the world, handling over 70% of all BTC transactions. But in 2014, the exchange suddenly shut down, revealing that 850,000 BTC had been stolenâworth about $450 million at the time (and over $50 billion today!).
What Happened?
- Hackers exploited security flaws over several years.
- Poor management meant the theft went unnoticed for too long.
- Customers were locked out and never fully compensated.
đ¨ Lesson: If you donât control your private keys, you donât own your crypto.
2. FTX Collapse (2022) â $8 Billion Vanished
FTX, run by Sam Bankman-Fried (SBF), was one of the biggest crypto exchangesâuntil it collapsed in November 2022, leaving customers unable to withdraw their funds. The loss? Over $8 billion.
What Happened?
- FTX secretly used customer funds to cover losses in its sister company, Alameda Research.
- When this was exposed, investors panicked and withdrew fundsâcausing a liquidity crisis.
- FTX halted withdrawals, filed for bankruptcy, and SBF was later arrested for fraud.
đ¨ Lesson: Even trusted, high-profile exchanges can fail overnight. Donât leave large amounts of crypto on exchanges.
Tom Brady & the FTX Collapse: How the NFL Legend Lost Millions
Tom Brady, one of the greatest quarterbacks of all time, didnât just dominate the football fieldâhe also jumped headfirst into the crypto world. In 2021, Brady and his then-wife, supermodel Gisele BĂźndchen, became brand ambassadors for FTX, one of the biggest cryptocurrency exchanges at the time.
They starred in FTX commercials, promoting the platform as a safe and reliable place to trade crypto. Brady even changed his Twitter profile picture to one featuring laser eyes, a symbol of Bitcoin optimism. But when FTX collapsed in November 2022, Bradyâs crypto dreamsâand a massive chunk of his wealthâdisappeared.
How Much Did Tom Brady Lose in the FTX Collapse?
As part of his endorsement deal, Brady received 1.1 million shares of FTX stock, while BĂźndchen got 686,000 shares. When FTX was booming, these holdings were worth tens of millions of dollars. However, after the exchange filed for bankruptcy, FTX stock became worthless overnight.
đ¨ Estimated losses:
- Tom Brady: $30 million+ in FTX stock
- Gisele BĂźndchen: $18 million+ in FTX stock
Aside from the financial loss, Brady also faced major reputational damage. Fans and investors who trusted FTX partly because of his endorsement felt betrayed, leading to lawsuits against celebrities who promoted the exchange.
Bradyâs Legal Trouble: Sued for Promoting FTX
After FTX went bankrupt, angry investors filed lawsuits against Brady, BĂźndchen, and other celebrity endorsers like Shaquille OâNeal, Stephen Curry, and Larry David. The lawsuits accused them of misleading consumers by promoting a fraudulent company.
Brady, like most other FTX ambassadors, never disclosed how much he was paid or if he personally used the platform. This lack of transparency fueled public backlash and legal troubles.
đ¨ Lesson: Even celebrities with access to top financial advisors can lose millions in crypto. FTX looked safeâbut when an exchange collapses, even high-profile investors lose everything.
đĄ Protect yourself! Don’t trust celebrity endorsementsâuse a hardware wallet to secure your crypto.
How to Protect Your Crypto
đ° Donât trust exchanges with your long-term holdings. If youâre trading, keep only what you need for active transactions.
đ Use a hardware wallet (like Ledger) for secure, offline storage. You control your private keys, so no one can freeze or steal your funds.
đ Get a Ledger wallet & protect your crypto today: Ledger Official Store
Final Thoughts: Your Crypto, Your Responsibility
Cold wallets give you controlâbut that also means security is 100% in your hands. Take the extra steps to protect your Ledger wallet, and youâll sleep easy knowing your crypto is truly yours.
âĄď¸ Order Your Ledger Wallet Now
Stay safe out there! đ