Coldcard Security Flaw Triggers Record Bitcoin Transfers

CryptoQuant has reported that Bitcoin transfers by small holders surged to levels seen during the 2022 FTX collapse after a security flaw was disclosed in Coldcard, a hardware wallet.

The on-chain analytics firm stated that Bitcoin transfer volume for transactions of less than 1 BTC reached 39,600 BTC on July 31, close to the 39,900 BTC recorded during the FTX collapse in November 2022.

This surge marked the largest movement in about four years as users shifted their Bitcoin to other custody options following a flaw in Coldcard's random number generation process.