Trezor Removes Password Limits After Coldcard's $100M Wallet Thefts

Hardware wallet maker Trezor has lifted its password ceiling in response to a series of high-profile thefts affecting competitor Coldcard, which reportedly resulted in losses exceeding $100 million. The move comes after July’s Coldcard attacks, where some users with strong passphrases were able to protect their funds even when their wallet recovery information was compromised. Trezor’s decision to remove password length restrictions aims to give users more flexibility to create longer, more complex passphrases, a key defense against unauthorized access. The change underscores the growing importance of passphrase strength in securing cryptocurrency holdings, especially as attackers increasingly target recovery seeds and backup data. By aligning its security features with emerging threats, Trezor is signaling a proactive stance in the competitive hardware wallet market. This update may prompt other wallet providers to reevaluate their own passphrase policies. For crypto users, the lesson is clear: a robust passphrase can be the last line of defense when other security layers fail.