(Bloomberg) — It was a tough week for crypto, but a good time to get a drink by Thursday evening.
PubKey, a well-known bar for crypto enthusiasts in Manhattan’s West Village, was slinging pints during an event. Attendees were riffing about a hack involving some Coinkite Inc. devices that have so far siphoned an estimated $130 million from customers, and sent the industry into a tizzy about security, perceptions, even the reason Bitcoin exists.
“We have to remind the community often that this is not just like the way Bitcoin started,” said Jordan White, an attendee who’s a crossing guard by day and hacker in his spare time as part of a group called DCG 201.
He contrasted his early days working with “five different dorks” to much broader communities now. “These are people’s lives and life savings,” White said. “It’s not even just big businesses. These are people’s lives.”
Coinkite is one of a few companies that offer physical devices called “cold wallets.” They intend to make customers’ crypto holdings safe by generating secret codes unattached to the internet, which individuals can use to access their holdings.
Last week, that idea fell apart. A hack of some of Coinkite’s Coldcard devices showed that even those were not as safe as customers imagined.
At the same time, Bitcoin itself has been performing terribly, down roughly 50% since an October high. Alongside other problems — including violent robberies by criminals demanding crypto — everyone at the event seemed to be in need of a local therapy session, possibly involving some cold Guinness.
“We give it a physical home because people want to get away from their computer and actually connect in real life,” said Thomas Pacchia, a co-founder of PubKey.
He organized the event alongside DCG 201, whose name references an area code in New Jersey, where some of the members are based.
The dialogue was mostly about how technical experts can help get things solved. Among attendees was Alex Thorn, an analyst with Galaxy who’s been helping victims figure out what to do.
Thorn has had outreach from people who’ve lost a full Bitcoin, he said. At current prices, that’s less than $65,000, but still a big loss for individual pockets. He recounted an unnamed victim whose wife was in labor as the hack was happening, and by the time they returned home, all their Bitcoin was gone.
The bar offered an “orange pill drink,” referencing a color often associated with Bitcoin. Ingredients: High Life beer, Campari, Vermouth, and an orange peel.
The most cinematic moment occurred when Pacchia said he wanted to build a memorial to Coldcard, the Coinkite device that was compromised. A man threw his onto the stage. It was covered in bubble wrap, but the message was: he was done with it.
“Our very first customers were crying in their beer,” Pacchia said about when his pub launched during another crypto downturn in 2022. “And what we said is you have to come back and throw high fives when we recover from this.”
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