Bitcoin News Today: Record 80,000 BTC Sale May Be Tied to 2011 MyBitcoin Scandal

A record-breaking Bitcoin transaction involving 80,000 BTC—valued at over $9 billion—has drawn attention to its potential ties to a 2011 cryptocurrency wallet scandal linked to the defunct custodial service MyBitcoin. Galaxy Digital, which facilitated the sale, described the move as part of estate planning for an early Bitcoin adopter. However, analysts have raised questions about the provenance of the coins, suggesting they may originate from wallets connected to the 2011 collapse of MyBitcoin [1].

Blockchain analytics firm CryptoQuant CEO Ki Young Ju proposed a theory that the BTC could trace back to wallets associated with MyBitcoin, a platform that shut down in 2011 after a hack. These wallets had remained inactive since April 2011, just months before the service’s failure. Ju speculated that the coins might have been controlled by either the hacker responsible for the breach or MyBitcoin’s founder, Tom Williams, who vanished around the time of the incident [1]. Galaxy Digital has not confirmed the source of the assets, emphasizing instead that the transaction served a legacy investor’s estate planning needs.

The movement of these dormant coins aligns with broader trends of long-sitting Bitcoin wallets reactivating. For instance, a separate 3,962 BTC transfer—held in a wallet since January 2011—recently reactivated, sparking speculation about its owner’s identity and the implications for market liquidity [2]. Such large-scale movements highlight the growing influence of historical wallet activity on Bitcoin’s price dynamics. Analysts note that the sudden release of substantial holdings can temporarily disrupt trading volumes and investor sentiment, though the long-term impact depends on whether these events become part of a broader pattern [2].

The 2011 MyBitcoin scandal remains a focal point of debate. At the time, Williams’ disappearance and the service’s lack of transparency fueled speculation about the fate of user funds. The recent 80,000 BTC transfer has rekindled interest in whether Williams or the hacker still controls these assets [1]. Galaxy Digital’s role in the transaction has also drawn scrutiny, with questions about whether the firm conducted forensic checks to verify the coins’ origins. The firm has not publicly addressed these concerns, focusing instead on its client’s status as an early Bitcoin participant.

The reactivation of dormant wallets underscores challenges in tracking Bitcoin’s true supply and ownership. Unlike fiat currencies, Bitcoin’s decentralized nature allows large transfers to occur without immediate public visibility, complicating market transparency assessments. This opacity has sparked ongoing discussions about the role of legacy wallets in shaping price movements, particularly as more long-sitting holdings resurface.

The event serves as a reminder of Bitcoin’s complex history and the enduring mysteries surrounding its early days. While traditional drivers like ETF inflows continue to influence the market, the interplay between historical transactions and contemporary activity is becoming increasingly significant for investors and analysts.

Sources:

[1] [Record-Breaking Bitcoin Sale May Be Tied to 2011 Wallet Scandal] (https://coindoo.com/record-breaking-bitcoin-sale-may-be-tied-to-2011-wallet-scandal/)

[2] [Coinpedia - Fintech & Cryptocurrency News Media] (https://coinpedia.org/)