Coldcard Breach Triggers Bitcoin Transfer Surge
A security flaw in Coldcard hardware wallets has led to a surge in small Bitcoin transfers, with over 39,600 BTC moved on July 31, a rate not seen since the FTX collapse. According to CryptoQuant's Head of Research Julio Moreno, this figure is comparable to the 39,900 BTC transferred on November 16, 2022, days after FTX failed.
Moreno linked the move to the Coldcard breach, saying people appeared to be shifting holdings 'looking for safety,' while noting the connection was not certain. Notably, Bitcoin's price barely moved amid the wave of exchange deposits, suggesting that users were moving their coins to secure them rather than sell.
Galaxy Research has flagged a likely fourth wave of thefts, which would take losses to about 1,816 BTC, near $114 million. Alex Thorn, Head of Research at Galaxy Research, tweeted that some sweeps are still sitting unconfirmed in the mempool and have opted into replace-by-fee, meaning holders who act quickly and pay a high fee may be able to outbid the attacker.
Kraken chief security officer Nick Percoco called the incident a 'wake-up call for the entire hardware wallet industry.' He wants independent lab validation of entropy sources, bound to specific firmware versions and listed in a public registry.