Coldcard Hack Triggers Biggest Small Bitcoin Transfer Wave Since FTX Collapse

Bitcoin transfers under 1 BTC surged to their highest daily level since November 2022, with 39,600 BTC moved on Friday amid the ongoing suspected Coldcard hack. The figure came just short of the 39,900 BTC transferred days after FTX’s bankruptcy filing, according to CryptoQuant head of research Julio Moreno, who called the activity encouraging as users took steps to protect their holdings.

Attack Continues to Claim New Victims

Galaxy Research reported an additional wave draining 207.7 BTC, worth about $13.2 million, bringing total estimated losses to 1,367 BTC, roughly $88.6 million, across 4,585 addresses. Alex Thorn, Galaxy Digital’s head of firmwide research, warned the attack remained active and urged users to move funds from Coldcard-generated addresses immediately, noting that user reports have helped researchers and authorities trace stolen funds.

Incident Reignites Self-Custody Debate

The hack has renewed discussion around the risks and benefits of Bitcoin self-custody. Casa CEO Nick Neuman pushed back against claims that self-custody is finished, estimating that potentially ten times more bitcoin remains safely self-custodied than was stolen in the attack. Meanwhile, Bloomberg ETF analyst Eric Balchunas argued that Bitcoin ETFs offer a safer, more convenient option for many users, while others maintained the incident reflects a failure specific to one wallet provider rather than self-custody as a whole.