Bitcoin active addresses hit highest level since December 2024 after Coldcard exploit: Glassnode

Bitcoin active addresses hit highest level since December 2024 after Coldcard exploit: Glassnode

Meanwhile, US spot Bitcoin ETFs have attracted $620 million in inflows since the incident.

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By Editorial Team
Edited by Vivian Nguyen

Active Bitcoin addresses rose to around 980,000 daily after the Coldcard firmware exploit, marking the highest reading since December 2024, according to Glassnode. The increase was fueled by users transferring funds and migrating seed phrases following the security incident.

Hackers have stolen an estimated $130 million in Bitcoin by exploiting a flaw in older Coldcard hardware wallets that allowed attackers to predict users’ seed phrases, according to Galaxy Research and blockchain analytics firm Elliptic.

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Security researchers believe multiple hacker groups are taking advantage of predictable seed phrase generation in affected devices.

Researchers at Block found the vulnerability to be related to the way certain Coldcard devices generate recovery seed phrases.

Rather than breaking into offline wallets directly, attackers were able to brute-force predictable seed phrases and gain access to victims’ Bitcoin. Coinkite has urged affected users to update their devices and migrate funds to newly generated seed phrases.

The elevated network activity is viewed as security-driven rather than market-driven. According to Glassnode, instead of reflecting stronger demand or higher adoption, the increase suggests Bitcoin holders were responding to the exploit by moving assets to safer custody arrangements.

Meanwhile, US-listed spot Bitcoin ETFs have taken in $620 million since the Coldcard wallet exploit, with inflows recorded every day and increasing as the week progressed, Farside Investors data shows.

According to Bloomberg ETF analyst Eric Balchunas, there is no evidence directly connecting the two events but some investors could ultimately choose ETF custody over self-custody following the hack.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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Bitcoin active addresses hit highest level since December 2024 after Coldcard exploit: Glassnode

Bitcoin active addresses hit highest level since December 2024 after Coldcard exploit: Glassnode

Meanwhile, US spot Bitcoin ETFs have attracted $620 million in inflows since the incident.

By Editorial Team
Edited by Vivian Nguyen

Share

Add us on Google

Active Bitcoin addresses rose to around 980,000 daily after the Coldcard firmware exploit, marking the highest reading since December 2024, according to Glassnode. The increase was fueled by users transferring funds and migrating seed phrases following the security incident.

Hackers have stolen an estimated $130 million in Bitcoin by exploiting a flaw in older Coldcard hardware wallets that allowed attackers to predict users’ seed phrases, according to Galaxy Research and blockchain analytics firm Elliptic.

Advertisement

Security researchers believe multiple hacker groups are taking advantage of predictable seed phrase generation in affected devices.

Researchers at Block found the vulnerability to be related to the way certain Coldcard devices generate recovery seed phrases.

Rather than breaking into offline wallets directly, attackers were able to brute-force predictable seed phrases and gain access to victims’ Bitcoin. Coinkite has urged affected users to update their devices and migrate funds to newly generated seed phrases.

The elevated network activity is viewed as security-driven rather than market-driven. According to Glassnode, instead of reflecting stronger demand or higher adoption, the increase suggests Bitcoin holders were responding to the exploit by moving assets to safer custody arrangements.

Meanwhile, US-listed spot Bitcoin ETFs have taken in $620 million since the Coldcard wallet exploit, with inflows recorded every day and increasing as the week progressed, Farside Investors data shows.

According to Bloomberg ETF analyst Eric Balchunas, there is no evidence directly connecting the two events but some investors could ultimately choose ETF custody over self-custody following the hack.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.