Coldcard Hack Unleashes Crypto Market Panic
CryptoQuant's head of research Julio Moreno has observed a significant increase in small Bitcoin transfers, reaching their highest level since November 2022. This surge is attributed to concerns surrounding a suspected Coldcard wallet-related hack.
According to Galaxy Research, the incident has resulted in estimated losses of 1,367 BTC across 4,585 addresses, with an additional 207.7 BTC taken in a further wave. The attack is ongoing, and Alex Thorn from Galaxy Digital urges affected users to move funds immediately from Coldcard-generated addresses.
The incident has reignited debate over the safety of self-custody versus relying on third-party platforms. Nick Neuman, CEO of Bitcoin security company Casa, argues that self-custody can provide a defensive advantage when users monitor and act on warnings. In contrast, Eric Balchunas suggests that Bitcoin exchange-traded funds may offer a safer alternative for many users.