Coldcard Investors Send $89 Million Back to Exchanges as FTX Comparisons Fade

Investors who lost millions in the Coldcard exploit are sending Bitcoin back to exchanges, a move that contrasts sharply with the aftermath of FTX's collapse. Unlike FTX, where investors were reluctant to return their funds due to concerns about security and regulatory risks, the Coldcard case is seeing investors send $89 million worth of Bitcoin back to exchanges.

At its peak, the Coldcard exploit had drained nearly 1% of the total Bitcoin supply. The incident occurred when hackers exploited a vulnerability in the wallet's firmware, allowing them to drain funds from users' wallets.

The difference between the FTX and Coldcard cases may be attributed to the nature of the incidents themselves. FTX's collapse was a result of mismanagement and regulatory issues, whereas the Coldcard exploit was primarily a technical issue.