Bitcoin users moved a significant amount of small transactions following the Coldcard hack, reaching levels not seen since the FTX collapse. Researchers warn that the attack remains active and urge us
In an unprecedented development in the crypto space, Bitcoin (BTC) witnessed its largest sub-1 BTC transfer volume on a single day since the FTX debacle, with 39,600 BTC moved. This surge was triggered by ongoing concerns over a suspected Coldcard hack that has been active since late July.
According to CryptoQuant's head of research, Julio Moreno, this high level of small Bitcoin transfers occurred as users responded to the potential threat posed by the hack. The amount transferred on Friday surpassed levels seen during the FTX collapse in November 2022, when 39,900 BTC was moved.
The incident has reignited debates about self-custody and user security. Researchers from Galaxy Research reported that a new wave of attacks had drained an additional 207.7 BTC ($13.2 million), bringing total losses to approximately $88.6 million across over 4,500 addresses.
Nick Neuman, CEO of Bitcoin security company Casa, argued against the notion that self-custody is flawed, stating that it protected significantly more funds than those stolen by the hack. However, traditional finance supporters like Eric Balchunas emphasized the convenience and safety provided by exchange-traded funds (ETFs).
The Coldcard incident highlights the ongoing challenges in securing cryptocurrency assets. As hardware wallet providers continue to face vulnerabilities, users are being urged to be vigilant and move their funds from affected addresses if necessary.
Traders should closely monitor developments as researchers work to identify new victims and attacker addresses. This event serves as a reminder of the importance of self-custody for many in the crypto community, while also sparking broader discussions on user security and wallet provider reliability.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.