Coldcard Hack Triggers Massive Bitcoin Migration

The recent Coldcard hardware wallet hack has sent shockwaves through the cryptocurrency community. According to Glassnode, long-term Bitcoin holders have moved approximately $13.69 billion worth of BTC over the past week, a mass migration linked directly to the aftermath of the breach.

The attack exploited a five-year-old key-generation vulnerability in Coldcard devices, allowing attackers to drain around 594 BTC (approximately $38 million) from around 500 self-custodied wallets on July 31. Although the immediate financial loss was confined to a few hundred addresses, the psychological blow has been far wider.

Glassnode data reveals that long-term holder supply now stands at approximately 14.7 million BTC, down from just under 15 million before the incident and near an all-time high. The analytics firm notes that this type of movement is likely not profit-taking but rather a migration in how Bitcoin is being stored following the Coldcard incident.

Users are transferring their assets to newly generated wallets with stronger security features, while others may be moving their coins to regulated custodians or spot Bitcoin ETFs as they reconsider the risks of self-custody. This development has reignited the debate over self-custody versus third-party custody and highlights that even cold storage carries risks.