Key facts
- A suspected hack of Coldcard hardware wallets is ongoing.
- Users transferred 39,600 BTC in small transactions.
- This is the largest daily transfer of BTC under 1 BTC since the FTX collapse.
- Researchers warn the attack remains active.
- The event has prompted renewed debate on self-custody versus third-party platforms.
A suspected hack targeting Coldcard hardware wallets has led to an unprecedented surge in small Bitcoin transactions, with users transferring 39,600 BTC in amounts under 1 BTC. This daily volume represents the largest such movement of Bitcoin since the collapse of the FTX exchange. Researchers monitoring the situation have warned that the attack remains active, indicating that the threat to users' funds is ongoing. The incident has reignited a critical debate within the cryptocurrency community regarding the inherent risks associated with self-custody of digital assets versus the perceived security of holding funds on third-party platforms. The substantial outflow of Bitcoin in smaller denominations suggests a broad user response to the perceived vulnerability of their hardware wallets. The ongoing nature of the attack and the significant volume of funds being moved highlight the persistent challenges in securing digital assets in the cryptocurrency space. This event underscores the importance of robust security measures and user awareness in managing private keys and protecting against sophisticated cyber threats.