10,000 BTC moves off crypto wallet linked to Mt. Gox hack


A crypto wallet belonging to the closed crypto exchange BTC-e just moved 10,000 Bitcoin (BTC), currently worth more than $165 million, to various exchanges, personal wallets and other sources on November 23rd.

November 23 Chainalysis a report suggested, while this withdrawal is the largest made by BTC-e since April 2018, BTC-e and WEX – an exchange believed to be BTC-e’s successor – both sent small amounts of BTC to Russian electronic payment service Webmoney on 26- an of October before making a test payment on November 11th, then transferring another 100 BTC on November 21st.

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The movement of BTC belonging to BTC-e and WEX wallets. Image: Chain analysis

Of the total amount sent, 9,950 BTC is believed to still be located in personal wallets, while the rest was moved through intermediaries before ending up at four deposit addresses on two large exchanges.

Blockchain analytics firm Cryptoquant co-founder and CEO, Ki Young Ju, also verified the findings noting 0.6% of the funds were sent to exchanges and may represent selling liquidity.

In a tweet dated November 24, Young Ju shared images of the transfer, highlighting that BTC had been in the wallet for over seven years.

Young Ju also mentioned that 65 BTC was transferred to the crypto exchange HitBTC and called them to interrupt the account for suspicious activity.

Related: Crypto has survived worse than the fall of FTX: Chainalysis

Mt. Gox was a Tokyo-based cryptocurrency exchange that at one time accounted for more than 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 following 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 large amount of Bitcoin,” and in April 2018 moved more than 30,000 BTC from 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 over the past five years as a result.

A WizSecurity report published in 2017 claimed that BTC-e and Vinnik were directly involved in the theft of Mt. Gox Bitcoin and user funds, where the latter was forced to suspend trading and close its website after the losses.