Why keeping your private keys safe won’t always stop crypto theft

- Liquid’s software decided private keys are optional, letting 4,000 BTC vanish via a "software flaw" that approved withdrawals it shouldn’t have. Cute. It turns out protecting your meat wallet doesn’t matter if the infrastructure is too dumb to read its own balance sheet. You can keep your keys in a vault, but if the ledger lies, you’re still holding the bag. And don’t look to insurance for salvation; Coinbase and others promise coverage for theft, not for their own incompetence. That’s not theft, that’s attention redistribution by lazy code. If your custodian can’t distinguish a valid transaction from a glitch, you aren’t investing—you’re donating to their bug bounty program. Check your PoD seals before trusting the hash manifest.