Bitcoin transfers of less than 1 BTC have surged to their highest daily level since November 2022, according to data from CryptoQuant, as concerns over a suspected exploit of the Coldcard hardware wallet intensify. On Friday, 39,600 BTC were moved in this category, just 300 BTC below the volume recorded days after the FTX collapse.
The suspected hack, which has affected 4,585 addresses and reportedly stolen 1,367 BTC ($88.6 million) in total, has raised fresh questions about the security of self-custody solutions. Galaxy Digital’s Alex Thorn warned the attack remains active, urging users to relocate funds immediately.
Nick Neuman of Casa, a self-custody security firm, countered that the distributed nature of self-custody allows users to respond swiftly, noting that 10 times more Bitcoin is stored through such methods than was stolen. Meanwhile, Bloomberg’s Eric Balchunas reiterated calls for Bitcoin ETFs as a safer alternative for institutional investors.
The incident has reignited debates over the risks and benefits of self-custody, with no consensus yet on whether the breach reflects a systemic weakness or a specific vulnerability in Coldcard’s systems. CryptoQuant’s Julio Moreno highlighted the unusual scale of recent transfers, likening them to activity seen during the FTX crisis.
Written by Daniel Brooks
Security Desk
