A dormant 10,000 BTC linked to a crypto wallet belonging to the hacked Mt. Gox has been moved for the first time in over 7 years. This whooping asset worth $165 million was reportedly moved to various exchanges, personal wallets, and other sources on the 23rd of November.
A report by Chainalysis suggested that this withdrawal is the largest made by BTC-e since April 2018. The report says that both BTC-e and WEX, an exchange regarded that BTC-e’s successor, sent small amounts of BTC to Russian electronic payments service Webmoney on October 26 before making a test payment on November 11, followed by 100 BTC on November 21.
Out of the total amount sent, 9,950 BTC is thought to still be located in personal wallets, while the rest was moved through intermediaries before ending up at four deposit addresses in two large exchanges.
Ki Young Ju, the co-founder of the blockchain analytics firm Cryptoquant, also verified the report, stating that may represent sell-side liquidity because they were sent to exchanges.
In a tweet on November 24, Young Ju shared screenshots of the transaction, pointing out that the BTC has been dormant for over seven years.
Ki Young Ju tweeted, “7-year-old 10,000 BTC moved today. No surprise, it’s from criminals, like most of the old Bitcoins. It’s the BTC-e exchange wallet related to the 2014 Mt. Gox hack. They sent 65 BTC to @hitbtc a few hours ago, so it’s not a gov auction or something.”
7-year-old 10,000 $BTC moved today.
No surprise, it's from criminals, like most of the old Bitcoins. It's the BTC-e exchange wallet related to the 2014 Mt. Gox hack.
— Ki Young Ju (@ki_young_ju) November 24, 2022
In the same thread of tweets, Young Ju called on the crypto exchange HitBTC to suspend the account for suspicious activity.
About Mt. Gox
Mt. Gox was a Tokyo-based crypto exchange that once accounted for over 70% of Bitcoin transactions. In 2014, the exchange was hacked with thousands of Bitcoin stolen, the exchange filed for bankruptcy shortly after.
BTC-e, which had its servers located in the United States, had its website shut down and funds seized by the Federal Bureau of Investigation (FBI) in 2017 after allegations that it was involved in money laundering, including crypto stolen during the Mt. Gox exchange hack.
According to Chainalysis, at the time of its shutdown BTC-e still held “a substantial amount of Bitcoin,” and in April 2018 moved over 30,000 BTC out of its service wallet.