Key facts
- Bitcoin transfers under 1 BTC hit their highest daily volume since the FTX exchange collapse.
- Approximately 39,600 BTC was moved in small transactions on Friday.
- The ongoing suspected Coldcard hack has resulted in estimated losses of 1,367 BTC ($88.6 million).
- Researchers identified a recent attack wave that drained an additional 207.7 BTC.
- The incident has reignited the debate surrounding Bitcoin self-custody versus reliance on third-party platforms.
Bitcoin users have moved the largest amount of BTC in small transactions since the collapse of FTX, with 39,600 BTC transferred on Friday. This surge in activity is linked to an ongoing suspected hack of Coldcard hardware wallets, which researchers warn remains active.
According to data shared by CryptoQuant head of research Julio Moreno, Friday's volume of Bitcoin transfers below 1 BTC was only 300 BTC shy of the amount moved on November 16, 2022, just days after FTX filed for bankruptcy. Moreno noted that this level of activity among smaller Bitcoin holders, referred to as 'plebs,' had not been seen since the FTX crisis.
Galaxy Research reported that the suspected Coldcard hack has led to an estimated loss of 1,367 BTC, valued at approximately $88.6 million, across 4,585 addresses. The firm's head of research, Alex Thorn, warned 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. Researchers are continuing to identify new victim and attacker addresses, with user reports aiding in tracking stolen funds.
The Coldcard incident has reignited the debate surrounding Bitcoin self-custody. Nick Neuman, CEO of Casa, argued that the distributed nature of self-custody allows users time to react and that more Bitcoin is protected than has been stolen. In contrast, Bloomberg's Eric Balchunas suggested that Bitcoin ETFs offer a safer and more convenient alternative for many users, citing the ETF industry's established history. Others contend that the Coldcard incident represents a failure of a specific wallet provider rather than a flaw in self-custody itself.