Coldcard Attacks Fuel Record Bitcoin On-Chain Activity

Recent attacks on Coldcard hardware wallets have led to a surge in Bitcoin on-chain activity. According to K33, approximately 890,000 BTC were moved on-chain over the past week, marking a new yearly high.

The Coldcard attacks exploited a firmware bug that generated insufficient randomness during wallet setup, making seed phrases predictable and allowing attackers to rebuild private keys and steal Bitcoin remotely.

K33 notes that this incident may have broader implications for the hardware wallet sector, as it has heightened concerns about security among other manufacturers such as Ledger and Trezor. This has prompted some users to consider centralized custodians or multisignature arrangements.