It is the wallet's private key written out as words a person can copy down. Anyone who knows the words can open the wallet without the device, so the phrase is treated as the asset itself. It does not change once created, even if the device's software is patched, so a flaw at the moment of generation leaves that wallet weak for good.
Bear 1
Predictions & track record (1)
Awaiting gradingWhat took $89 million in bitcoin was not a break-in on the walletsScore a hit if the number of addresses drained through this defect rises above 4,585 by the end of September 2026, meaning vulnerable seeds are still in use, and a miss if it does not.