Coldcard Hack Unleashes Torrent of Small Bitcoin Transfers
Recent data from CryptoQuant shows that smaller Bitcoin transfers have reached levels not seen since the FTX collapse in November 2022. According to Julio Moreno, head of research at CryptoQuant, the number of BTC moved below 1 $BTC on Friday was just 300 $BTC shy of the record set days after FTX filed for bankruptcy.
The suspected Coldcard hack continues to unfold, with researchers uncovering new victims and identifying fresh attack waves. Galaxy Research reported that the latest wave drained an additional 207.7 $BTC, worth about $13.2 million, bringing estimated losses to 1,367 $BTC ($88.6 million) across 4,585 addresses.
The incident 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. Nick Neuman, CEO of Casa, pushed back against claims that 'self-custody is over,' estimating that potentially 10 times more Bitcoin was protected through self-custody than was stolen and identified in the attack so far.