A recent sale of 80,000 bitcoins by Galaxy Digital has drawn attention to an old hacking incident involving the MyBitcoin exchange. The details of this deal raise several questions.
From a Dormant Wallet to a $9 Billion Payout
This week, Galaxy Digital confirmed it sold 80,000 bitcoins, valued at over $9.4 billion, through over-the-counter (OTC) deals. However, CryptoQuant CEO Ki Young Ju claims these coins may not belong to a long-term investor at all. He suggests that the sale could be linked to the 2011 MyBitcoin exchange hack. These wallets had been inactive since April 2011, coming back to life only recently.
CITE_NA: "The recent transfer of 80,000 BTC, dormant for 14 years, came from wallets originally hosted by MyBitcoin."
Did Galaxy Check Where the BTC Came From?
However, the situation raises questions. Ju stated, "It seems Galaxy Digital bought (handled) the #Bitcoin from them, but I’m not sure if they did any forensics." Galaxy did not disclose the seller's identity, instead describing them as a "Satoshi-era investor" and mentioning that the sale was part of estate planning. This explanation has not convinced everyone, and the lack of transparency has raised concerns over whether proper checks were conducted before handling such a significant amount, possibly linked to stolen funds.
Bitcoin Price Holds Steady Despite the Drama
Surprisingly, the market remained relatively calm. Despite such a large sale, Bitcoin's price barely moved, trading around $117,983. Since the deal was done OTC, it did not directly affect order books or exchanges. However, this raises a broader question: if stolen coins can quietly re-enter the system, how secure is the broader cryptocurrency market?
This situation illustrates changes in the Bitcoin market: old whales are no longer selling to retail investors; instead, they are passing coins to new long-term holders. This transformation highlights both the maturity of the cryptocurrency world and the many untold stories.
