A cryptocurrency wallet belonging to the now closed crypto exchange BTC-e has just moved 10,000 bitcoin (BTC), currently worth over $165 million, to various exchanges, personal wallets, and other sources on November 23.
A Chainalysis report from November 23 He suggested that while this withdrawal is the largest made by BTC-e since April 2018, both BTC-e and WEX -an exchange that believed to be the successor to BTC-e– they sent small amounts of BTC to the Russian electronic payment service Webmoney on October 26, before making a test payment on November 11, and then transferring another 100 BTC on November 21.
Of the total amount sent, 9,950 BTC is believed to still be in personal wallets, while the rest moved through intermediaries before ending up at four deposit addresses on two large exchanges.
The co-founder and CEO of blockchain analytics firm Cryptoquant, Ki Young Ju also verified the findings, noting that 0.6% of the funds were sent to exchanges and may represent sell-side liquidity.
In a tweet on November 24, Young Ju shared images of the transfer noting that the BTC had been in the wallet for over seven years.
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
Today 10,000 BTC have been moved with 7 years old. Not a surprise, it’s from criminals, like most old bitcoins. It’s the wallet from the BTC-e exchange, related to the 2014 Mt. Gox hack. They sent 65 BTC to @hitbtc a few hours ago, so it’s not a government auction or anything.
Young Ju also mentioned that 65 BTC had been transferred to the HitBTC crypto exchange and asked them to suspend the account for suspicious activity.
Mt. Gox was a Tokyo-based crypto exchange that once accounted for more than 70% of bitcoin transactions. In 2014, the exchange was hacked, stealing thousands of bitcoin, and the exchange filed for bankruptcy soon after.
The Federal Bureau of Investigation (FBI) in 2017 shut down the website and seized the funds from BTC-e, which had its servers located in the United States, after allegations that it was involved in money laundering, including the cryptocurrencies stolen during the Mt. Gox hack.
According to Chainalysis, at the time of its shutdown, BTC-e still held “a substantial amount of bitcoin,” and in April 2018 it moved more than 30,000 BTC out of its service wallet.
While the owners of BTC-e have tried to remain anonymous, Alexander Vinnik is believed to be the main operator. and has been embroiled in legal battles for the past five years as a result.
A WizSecurity report published in 2017 alleged that BTC-e and Vinnik were directly involved in the Mt. Gox bitcoin heist and from user funds, with the latter being forced to suspend operations and shut down its website following the losses.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.