Coldcard Hack Triggers $31M Dormant BTC Movement Amid Security Fears

Woofun AI reports that a dormant Bitcoin (BTC) wallet labeled 18TExP activated on Monday, moving funds shortly after the Coldcard security breach began on July 30. This transaction, flagged by Whale Alert and analyzed by Lookonchain on X, signals a broader trend of old coins moving on-chain amid rising security anxieties.

The specific movement involved 500 BTC, valued at $31.3 million, which had remained inactive for 12.7 years since its last transfer worth roughly $500,000. Lookonchain noted on X that the wallet transferred all 500 BTC ($31.27M) to a new address just 1 hour ago, attributing the shift to security concerns following the Coldcard incident after over 12 years of silence.

The Coldcard exploit, which targeted a popular Bitcoin-only hardware wallet, has drained thousands of BTC since attackers began exploiting a flaw dating back to March 2021. According to researchers at Galaxy, the total damage from this ongoing crisis is estimated at $130 million, with the breach commencing on July 30 and continuing to impact user confidence.

Woofun AI data shows a significant spike in spent output age bands tracked by CryptoQuant, with 935 BTC dormant for 10 years or longer moving on Aug. 3, the highest daily total since March 20.

Additionally, coins dormant for five to seven years saw a massive surge of 6,388 BTC on July 31, indicating widespread movement of long-held assets.

While such movements can stem from estate transfers, exchange consolidations, or custodial migrations, the clustering of these transactions suggests holders are proactively migrating funds due to self-custody safety concerns. This marks a notable shift in on-chain behavior driven by immediate security threats rather than routine financial planning.