A quiet $9 billion Bitcoin sale has now turned into a major controversy and it could be tied to one of the earliest crypto exchange hacks on record.
This week, Galaxy Digital confirmed it sold 80,000 Bitcoin (worth over $9.4 billion) through over-the-counter (OTC) deals. But CryptoQuant CEO Ki Young Ju says these coins may not belong to a long-term investor at all.
Instead, they could be linked to the 2011 MyBitcoin exchange hack – a breach that, until now, had faded into crypto history.
From a Dormant Wallet to a $9 Billion Payout
“The recent transfer of 80,000 BTC, dormant for 14 years, came from wallets originally hosted by MyBitcoin,” Ju posted on X.
These wallets had been inactive since April 2011, two months before MyBitcoin went offline following a hack. At the time, the exchange’s owner, Tom Williams, admitted the breach and said he was working on a resolution. The attack reportedly caused $72,000 in losses – a small figure by today’s standards, but if those coins were kept, they’re now worth billions.
Ju believes the Bitcoins either belong to the hacker or to Williams himself, who disappeared from the public eye after the exchange collapsed.
Did Galaxy Check Where the BTC Came From?
Here’s where things get murky. Ju added,
“It seems Galaxy Digital bought (handled) the #Bitcoin from them, but I’m not sure if they did any forensics.”
Galaxy didn’t reveal the seller’s identity. Instead, the company described them as a “Satoshi-era investor”, someone from Bitcoin’s early days, and said the sale was part of estate planning.
That explanation hasn’t convinced everyone. The lack of transparency is now raising concerns over whether Galaxy skipped