Smaller Bitcoin transfers have reached levels not seen since the collapse of FTX, driven by an ongoing suspected Coldcard hack that continues to drain user funds.
Bitcoin transfers below 1 BTC climbed to their highest daily level since November 2022 on Friday, with 39,600 BTC moved, according to data shared by CryptoQuant head of research Julio Moreno on Saturday.
FTX
That figure sat just 300 BTC below the 39,900 BTC transferred on Nov. 16, 2022, days after FTX filed for bankruptcy. Moreno said:
“The Bitcoin plebs had not moved this amount of BTC in a day since the FTX collapse.”
He added that he was encouraged to see users “taking action.”
Galaxy tracks ongoing attack
The surge in small transfers came as researchers uncovered new victims of the hack, which first surfaced in late July and appeared to remain active at publication.
Galaxy Research reported Saturday that the latest identified wave drained an additional 207.7 BTC, worth about $13.2 million. That brought estimated losses to 1,367 BTC ($88.6 million) across 4,585 addresses.
Alex Thorn, Galaxy Digital’s head of firmwide research, warned in an X post that the attack was still ongoing and urged users to move funds from Coldcard-generated addresses immediately.
Self-custody debate reignites
The incident has reignited debate over the risks and benefits of Bitcoin self-custody.
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 so far.
Bloomberg ETF analyst Eric Balchunas argued that Bitcoin ETFs offer a safer alternative, though others countered that the incident reflected a single wallet provider’s failure rather than a flaw in self-custody.
