Coldcard Chaos Triggers Bitcoin Network Activity Surge

Bitcoin's recent activity has surged to a three-month high, with 712,000 addresses active in the past seven days according to Santiment. This marks a significant increase in network activity.

The surge is largely attributed to the fallout from the Coldcard security incident, which affected users and led them to move funds and consolidate wallets. The incident involved weak keys generated by affected devices, with losses estimated at over 2,055 BTC, or approximately $130 million.

Galaxy Research identified that tokens were stolen from 7,300 addresses across three confirmed waves of attacks, with the potential for a fourth wave yet to be confirmed. Coinkite released emergency firmware updates for all affected models and destroyed remaining vulnerable inventory.