Coldcard Exploit Sparks Record Bitcoin Activity as Users Flock to Exchanges

A surge in Bitcoin onchain activity has reached its highest level this year as researchers link the spike to the ongoing Coldcard wallet exploit. The incident has prompted some users to move funds from hardware wallets to centralized exchanges, raising questions about security.

K33 Research found that nearly 890,000 BTC moved onchain over the past seven days, the highest seven-day active supply recorded this year. Galaxy Research confirmed the theft of 1,596 BTC from approximately 7,300 addresses, with losses potentially rising to around 2,055 BTC.

The Coldcard breach has led to changes in custody behavior, with OKX Chief Compliance Officer Jonathan Brockmeier stating that the exchange has experienced record inflows following the incident. He noted that exchanges can provide dedicated security teams and automated monitoring systems for users who prefer managed custody.