Smaller Bitcoin transfers have reached levels not seen since the collapse of cryptocurrency exchange FTX amid an ongoing suspected Coldcard hack.
Bitcoin transfers below 1 BTC climbed to their highest daily level since November 2022 on Friday, with 39,600 BTC moved, according to data shared by CryptoQuant head of research Julio Moreno on Saturday.
The figure was just 300 BTC below the 39,900 BTC transferred on Nov. 16, 2022, days after FTX filed for bankruptcy. “The Bitcoin plebs had not moved this amount of BTC in a day since the FTX collapse,” Moreno said, adding that he was encouraged to see users “taking action.”
As the suspected Coldcard hack continues to unfold, the incident has become a broader test for Bitcoin self-custody, reigniting debate over whether users are better protected by controlling their own funds or relying on third-party platforms.
Incident ongoing as Galaxy tracks three attack waves
The surge in small Bitcoin transfers came as researchers continued to uncover new victims of the suspected Coldcard hack, which first surfaced in late July and appeared to remain active at the time of publication.
Galaxy Research, the research arm of crypto investment company Galaxy Digital, reported Saturday that the latest identified wave drained an additional 207.7 BTC, worth about $13.2 million. The theft brought estimated losses to 1,367 BTC ($88.6 million) across 4,585 addresses.
Bitcoin drained from Coldcard wallets. Source: Coldcard Watch
Alex Thorn, Galaxy Digital’s head of firmwide research, warned in an X post on Sunday that the attack was still ongoing and urged users to move funds from Coldcard-generated addresses immediately if they had not already done so.
Thorn said his team continued to identify new victim and attacker addresses, adding that reports from users had helped researchers and authorities track stolen funds.
Coldcard incident reignites self-custody debate
The suspected Coldcard hack has reignited debate over the risks and benefits of Bitcoin self-custody, a core principle of crypto that allows users to control their funds without relying on third parties.
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