Potential hackers seized an approximately $88.6 million in Bitcoin from Coldcard wallets, triggering small transfers under 1 BTC to their highest daily level as the FTX declines and renewing speculations over self-custody against exchange security.
Bitcoin users moved 39,600 BTC in transactions under 1 BTC on Friday, the highest level following FTX’s declined in November 2022.
CryptoQuant Research Julio Moreno underscores that the activity has a strong user response to the incident, emphasizing it raised to the record levels shown following FTX filed for bankruptcy. He further added that Bitcoin active addresses increased to approximately 1 million on July 31, hitting a level not recorded since December 2024, while BTC exchange deposits rose to 7,300 BTC, achieving its highest point since February 2025.
Coldcard Hacks Increases Reach $88.6M
The potential Coldcard hack, first announced in July, is still active as researchers determined more victims. Galaxy Research reported an additional 207.7 BTC stolen, bringing approximately losses of about 1,367 BTC or about $88.6 million across 4,585 addresses.
In contrast, Alex Thorn signaled that the Coldcard attack was continuous and advised users to shift funds from affected addresses. He further added that researchers were still finding new victim and attacker addresses, with user reports assisting track the stolen funds.
Coldcard Renews Self-Custody Debate
The Coldcard incident renews speculations over Bitcoin self-custody. Nick Neuman defends the model’s strength. He debated that decentralized nature enabled users to respond promptly and secure their account.
Other debated that the Coldcard incident emphasized weaknesses in a particular wallet provider than the self-custody. Backers of self-custody highlighted that users who adopt proper security practices can lessen exposure to centralized failures, while speculations emphasized that handling self-custody demands major technical responsibility.
Traditional finance analysts underscore that Bitcoin ETFs is a more secure and convenient option for many investors. Others debated that the Coldcard incident exposed weaknesses in a particular wallet provider than a weakness in self-custody itself.
Coldcard Underscores Self-Custody Value
The Coldcard incident also highlighted the traditional finance observers. Eric Balchunas underscored Bitcoin exchange-traded funds (ETFs) as a more convenient and secure option for many investors who do not want the responsibility of handling self-custody.
The debate shows a wider divide in the crypto sector whether Bitcoin’s future relies on strengthening individuals to control their own assets or developing easy access through regulated financial products.
The Coldcard incident has become prominent for additional testing on how the system balances decentralization, security, and user convenience.
