Coldcard Hack Sparks Biggest Sub-1 BTC Move Since FTX

The suspected Coldcard hack has caused a significant increase in small Bitcoin transfers, reaching levels not seen since the FTX collapse. According to data from CryptoQuant, 39,600 BTC were moved on Friday, just 300 BTC below the 39,900 BTC transferred on November 16, 2022.

This surge in small transfers has reignited debate over the risks and benefits of Bitcoin self-custody, with some arguing that users are better protected by controlling their own funds rather than relying on third-party platforms. Julio Moreno from CryptoQuant noted that this move was 'a sign that users are taking action', and encouraged by this development.

Galaxy Research has been tracking the suspected Coldcard hack, which first surfaced in late July, and reported that three attack waves have drained an additional 207.7 BTC worth about $13.2 million. The estimated losses from the hack now stand at 1,367 BTC ($88.6 million) across 4,585 addresses.

Researchers are continuing to identify new victims of the suspected Coldcard hack, and users are being warned to move funds from Coldcard-generated addresses immediately if they have not already done so. Nick Neuman, CEO of Bitcoin security company Casa, argued that self-custody is a distributed system that gives users time to react, estimating that potentially 10 times more Bitcoin was protected through self-custody than was stolen and identified in the attack so far.