80,000 BTC Transferred from Dormant Wallets, Bitcoin Community Speculates Hack

Bitcoin's latest price was $, in the last 24 hours. The Bitcoin community was abuzz with a significant event on July 4, when eight dormant wallets, inactive for 14 years, transferred a total of 80,000 BTC. This massive transaction, first reported by blockchain analytics platform Arkham Intelligence, involved the transfer of 40,000 BTC from a dormant wallet, followed by four transactions of 10,000 BTC each over a span of 10 hours. The Bitcoins have not been sold or further transferred since the five transactions, and are currently held in eight new wallets.

Conor Grogan, Head of Product at Coinbase, speculated that there is a “small possibility” that the transfer of $8.6 billion worth of Bitcoin (BTC) on July 4 was a hack. He called his claim “extreme speculation” in an X post on Friday, noting that the transaction movements were “extremely odd.” He added that if true, this would be by far the largest heist in human history. Grogan pointed to a Bitcoin Cash (BCH) test transaction that preceded the Bitcoin transfers as potential evidence of foul play. The entity that transferred the 80,000 Bitcoins transferred 10,000 BCH, worth nearly $5 million, and back into one of the original wallets an hour before the transfer of the BTCs began. Grogan said that there is a possibility the owner of the wallets was trying to discreetly test the private key without attracting attention with the test BCH transaction. However, Grogan wrote that he does not believe the transactions were conducted by an exchange because of the BCH test transaction, and since the BTC transactions were executed manually.

Many in the community did not agree with Grogan’s hack theory. Sani, a Bitcoin maximalist and founder of Timechain Index, believes that the transferred 80,000 BTC belong to Roger Ver, also known as ‘Bitcoin Jesus.’ Ver, an early Bitcoin investor, was arrested in Spain last year on U.S. charges of tax fraud. He allegedly owes the Internal Revenue Service (IRS) at least $48 million in taxes, according to the Department of Justice (DOJ). Responding to an X user, Sani noted that the transfers could be an indication that Ver has reached a deal with the IRS, and a settlement might be in the pipeline. A former Pulsechain developer who goes by ‘bretep’ on X explained that it is practically impossible to hack a specific Bitcoin private key using any current technology. In fact, the chance is one in over 115 quattuorvigintillion (75 zeroes)—a person is more likely to get struck by lightning every day for 10,000 years straight, he explained, adding that the security isn’t just strong – it’s mathematically absurd to even attempt with any conceivable technology. With quantum computing, it’d take an estimated 30-40 years, but that is just theoretical at this point. An X user who goes by ‘bizzy’ pointed out the logical flaw in Grogan’s conclusion. He stated that a scammer would not have transferred the BCH tokens before the BTC transactions since it could have risked “tipping off the owner.” Furthermore, barthazian.eth, a pseudonymous X user, claimed that the BCH transaction that Grogan pointed out as suspicious was a handshake transaction, which is common in cases of large over-the-counter transactions. Additionally, Optimism contributor and former Coinbase product manager Binji Pande noted that the slow pace of execution of the BTC transactions does not point towards a hack. He wrote that given how slowly these sends transpired, it’s hard to be convinced it’s a hack, I’d imagine they would be a bit faster with moving these funds.

Fragbite Group, a Swedish-listed company, has secured a 5 million SEK agreement primarily to develop a Bitcoin treasury. CFO Patrik von Bahr contributed significantly, enhancing leadership within the firm’s new Bitcoin-focused division. This initiative enables Fragbite to strategically adopt Bitcoin holdings and report a new Bitcoin/stock metric in future reports. CFO and Treasury Director Patrik von Bahr emphasized the growing importance of Bitcoin metrics in corporate strategies. The interest-free convertible loan matures by November 2028, reflecting an innovative financing model. According to von Bahr, the ability to measure Bitcoin per share metrics and elevate value from BTC holdings will become increasingly important for companies in the future. Fragbite Group’s early adoption of this strategy will create substantial shareholder value in both the short and long term. This funding impacts the cryptocurrency market by expanding corporate BTC holdings. Fragbite’s stock previously surged 64% amid positive investor sentiment, drawn by the pro-Bitcoin signal. Other firms like MicroStrategy have shown similar moves bolster company profiles. Financially, Fragbite anticipates stronger treasury holdings with Bitcoin as a hedge against inflation, aligning with successful precedents set by global tech firms. The initiative aligns with investor interests and sets a notable trend among listed companies focusing on cryptocurrency reserves. Immediate reactions suggest potential for increased BTC market activity with Fragbite’s inclusion. Historically, positive market sentiment follows such announcements, though it remains unclear if it will significantly impact current BTC prices.

Fidelity Investments’ global macro director Jurrien Timmer says that the stage is set for Bitcoin (BTC) to have an explosive breakout. In a new thread on the social media platform X, Timmer says that based on a historical relationship between Bitcoin and the global money supply metric the top digital asset by soon print new all-time highs. Timmer’s analysis suggests that the current economic conditions, including improving liquidity and a stock market reaching new highs, are conducive to Bitcoin’s growth. He believes that Bitcoin’s historical correlation with the global money supply indicates that the cryptocurrency is poised for significant gains in the near future. Timmer’s insights highlight the potential for Bitcoin to continue its upward trajectory, driven by macroeconomic factors and increasing institutional interest. His observations underscore the importance of monitoring global economic trends and their impact on the cryptocurrency market. Timmer’s analysis provides a bullish outlook for Bitcoin, suggesting that the cryptocurrency is well-positioned to capitalize on current market conditions and achieve new all-time highs. His insights offer valuable perspectives for investors and stakeholders looking to navigate the dynamic landscape of the cryptocurrency market.