Bitcoin holders with less than 1 BTC moved a combined 39,600 BTC on Friday, marking the fastest transfer pace since the FTX meltdown in 2022. This surge in activity wasn’t driven by new buyers piling in but by users rushing to secure funds amid fresh security fears.
Wallet migration became a hot topic after a critical flaw was uncovered in Coldcard’s firmware, affecting how some devices generated seed phrases. This vulnerability prompted many small holders to pull their coins out quickly, triggering what Galaxy Research identified as three attack waves that drained approximately 1,367 BTC from Coldcard addresses. The total losses from these attacks are estimated around $88.6 million at current prices, ranking the breach among the most severe Bitcoin wallet hacks in 2026.
Comparison to FTX Collapse Transfers
CryptoQuant’s Julio Moreno highlighted that the volume of small transfers was just shy of the 39,900 BTC moved on November 16, 2022, days after FTX filed for Chapter 11 bankruptcy. That event also caused wallet holders to scramble, reflecting defensive shifts rather than investment moves. The ongoing transfers appear to be security-driven, with many opting to migrate funds instead of depositing to exchanges where selling pressure could occur.
As Bitcoin hovered near $63,124 on Sunday, the community’s focus sharply turned to custody risks and hardware wallet reliability. Coldcard’s case reignited debates about the safety of self-custody solutions and how firmware vulnerabilities can impact seemingly secure environments.
Material is for informational purposes only and should not be considered financial advice.
