Coldcard Hack Sparks Biggest Sub-1 BTC Move Since FTX Collapse

The recent suspected Coldcard hack has led to a surge in small Bitcoin transfers, with 39,600 BTC moved on Friday, according to data from CryptoQuant. This is the highest daily level since November 2022, when FTX filed for bankruptcy and 39,900 BTC were transferred.

CryptoQuant's head of research, Julio Moreno, noted that smaller Bitcoin transfers have reached levels not seen since the FTX collapse. He expressed encouragement at users 'taking action', but warned that the situation is ongoing and that users should remain vigilant.

The hack has also reignited debate over the risks and benefits of Bitcoin self-custody, with some arguing that it provides a safer alternative to relying on third-party platforms. Galaxy Digital's head of firmwide research, Alex Thorn, urged users to move funds from Coldcard-generated addresses immediately if they had not already done so.

Estimates suggest that the total losses from the hack could be as high as $88.6 million, with potentially 10 times more Bitcoin protected through self-custody than was stolen and identified in the attack so far.