The aftermath of the Coldcard hardware wallet vulnerability is clearly reflected in on-chain data. According to a report by The Block, anxiety over the hack has triggered a massive movement of 890,000 BTC over the past week, hitting a 2026 high. This visually confirms the panic exodus of individual investors feeling insecure about self-custody. According to CryptoProwl, the cumulative damages from this incident have reached approximately $130 million.

Movements to launder the stolen funds are also in full swing. CertiK has detected evidence of the hacker bridging the stolen Bitcoin to Ethereum via THORChain, followed by two separate transfers of 200 ETH each into Tornado Cash. Furthermore, attempts to evade tracking are occurring in real-time, including the mixing of an additional 64.9 BTC through Wasabi Wallet.

In the wake of this incident, some in the industry are predicting a faster shift toward multisig systems. Interestingly, the analytical firm K33 has interpreted this massive on-chain movement and panic as a potential short-term market bottom signal. While it is a painful security incident for individual holders, it remains to be seen whether this will serve as a catalyst for upgrading the overall self-custody infrastructure. haha

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