Loading article…
Coldcard vulnerability forces 39,600 BTC transfers, $15 bn in value, biggest sub‑1 BTC flow since FTX collapse – see on‑chain details.
Bitcoin users shifted roughly 39,600 BTC (about $15 bn at current prices) into centralized exchanges on Friday, the largest sub‑1 BTC daily flow since the FTX bankruptcy in November 2022, as a suspected Coldcard hardware‑wallet hack continued to unfold【1】. The surge underscores renewed concerns over self‑custody security and could reshape where large holders keep their assets.
| At a glance | |
|---|---|
| BTC moved sub‑1 BTC daily | 39,600 BTC |
| Value of moved BTC | ≈ $15 bn |
| Comparison to prior peak | 300 BTC shy of 39,900 BTC moved after FTX collapse |
| Catalyst | Ongoing Coldcard firmware exploit exposing private keys【1】 |
CryptoQuant’s head of research noted that the 39,600 BTC transferred on Friday was just 300 BTC below the record set on Nov. 16 2022, when the FTX fallout prompted a similar scramble【1】. The bulk of the flow landed on major exchanges, with Binance alone seeing its BTC reserves rise by about 9,000 BTC—from 650,000 to 659,000—over the same week【3】. This influx represents roughly 18,000 BTC added to centralized platforms in seven days, a reversal of the self‑custody trend that has dominated the past two years.
Galaxy Research traced three attack waves, the latest draining an additional 207.7 BTC (≈ $13.2 m) and bringing total confirmed losses to 1,367 BTC (≈ $88.6 m) across 4,585 addresses【1】. The root cause is a pseudo‑random number generator (PRNG) flaw in Coldcard firmware dating back to March 2021, which reduced seed entropy from the expected 128 bits to about 40 bits, allowing attackers to derive private keys without user interaction【2】. The breach required no phishing, physical access, or user error, marking it the worst hardware‑wallet hack in Bitcoin history by confirmed loss amount【2】.
Bitcoin’s price slipped 1.4 % on the day of the hack, trading around $62,250 after a volatile week that saw it dip from above $65,000【2】. 24‑hour trading volume fell to $16.9 bn, down from over $20 bn the previous day, reflecting reduced market activity amid the security scare【2】.
The Coldcard episode revives the debate over self‑custody versus custodial solutions, highlighting that even well‑established hardware wallets can harbor long‑standing vulnerabilities. Whether users will shift back to exchanges or await robust wallet fixes remains an open question.
Coverage is mostly measured — 282 of 300 reports stay neutral.
Every Monday — the token unlocks, Fed dates & catalysts set to move crypto and markets this week. So you’re never blindsided.
Free · 3-min read · one-click unsubscribe
AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Aug 14, 2026 · How we report
Both assets are viewed as having a supply that cannot be increased at the discretion of a government, as Bitcoin's monetary rules were set at its launch.
While the base Bitcoin network allows for permissionless transactions, centralized entities like exchanges or stablecoin issuers can freeze assets if they are subject to regulatory or sanction requirements.
Analysts point to renewed optimism regarding U.S. crypto regulation, a short squeeze liquidating over $4 billion in bearish positions, and concerns over global financial infrastructure.