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Coldcard case highlights limits of “source available” crypto code

Coldcard’s firmware is released under MIT plus the Commons Clause, which restricts selling the software commercially.

Reported · Written up by our desk · Market Structure

A recent Coldcard hack involving a popular self-custody hardware wallet has renewed debate in crypto over what “open source” means in practice, with Bitcoin Magazine highlighting how software incentives and licensing can shape reliability.

Bitcoin Magazine notes that “open source” is governed by formal frameworks that define user freedoms, including rules such as free redistribution, access to source code for modification, and the ability to create and distribute derived works without discrimination, alongside the Open Source Initiative’s ten criteria.

The outlet contrasts open source licensing with “source available” or “source viewable” models, where code can be publicly readable while the license still limits rights, such as commercial use.

In Coldcard’s case, Bitcoin Magazine says the firmware is released under MIT terms plus the Commons Clause, and that the clause removes the right to sell the software, even if the code is viewable, and the hack reportedly led users to lose more than $100 million in bitcoin, over 1,500 BTC.

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