Activity in a Bitcoin wallet containing close to a billion dollars worth of Bitcoin has raised several suspicions and theories, as crypto enthusiasts, analysts and one particularly dedicated Reddit user have reported.
ANNOUNCEMENT: Silk Road is BACK ONLINE NOW as Silk Road 3.1 and open for business. The team did a change and upgrade for a reason we can only assume for security.
The wallet is said to contain 111,114.615 BTC, which is roughly $800 million in fiat currency. Reddit user “sick_silk” and other enthusiasts first noticed the account in May 2014 but didn’t see any activity for over four years.
Now, the excitement is palpable as the unknown owner of the account recently began moving chunks of the massive sum, setting in motion a trail of speculation over who it could be, and more importantly, where they got all that Bitcoin from.
Sell-Offs and Bitcoin Dumps Anticipated
Even without knowing the origin or the owner of the wallet in question, crypto enthusiasts are expecting that this recent activity only means that a huge dump is imminent.
Wallets of such magnitude have the power to influence Bitcoin’s market prices considerably, and so a major sell-off is something the world will take note of.
So far, a total of 60,000 coins have been moved in chunks of 30,000, 20,000 5,000, 500, and 100 bitcoin. A sum of 11,114 BTC (roughly $80.3 million) was sent to a Bitfinex wallet and another 4,421 BTC (approximately $32 million) was transferred to Binance.
This only represents 14 percent of the total sum in the wallet, but many anticipate that the activity won’t stop there.
The Silk Road Theory
Meanwhile, experts and enthusiasts have already begun spewing out theories over who the account may belong to.
Some believe that it is part of Silk Road founder Dread Pirate Roberts’ cache of 600,000 Bitcoin, which he hid in an encrypted wallet before the shutdown of Silk Road and the consequent arrest and life incarceration of the man behind the site, Ross Ulbricht.
The Silk Road marketplace didn’t last long, but over the two years it was in operation its administrators amassed millions of dollars in profits.
Though a significant portion of this was seized by the FBI and auctioned, large sums of Bitcoin remained unaccounted for, and crypto enthusiasts believe this could be one of the cold storages for the disappeared funds.
The Mt. Gox Theory
The Mt. Gox breach will go down in history as one of the biggest Bitcoin heists of all time. Back then, the price was $480 per coin, and the hackers took $437 million worth of Bitcoin.
This automatically rendered the exchange bankrupt, and to date, they are still reimbursing customers who lost their Bitcoins in the incident.
Since the last dates of the transaction of the mysterious account almost coincide with the final days of the exchange’s life, it is possible that the account was merely one of their reserves, and that they have now cracked it open to continue paying off their debts.
This theory was strengthened on August 23 when Nobuaki Kobayashi, a trustee at the exchange, released submission forms for creditors who were ready to make and prove their claims.
It is possible that the exchange is looking to make amends by settling its debts with as minimum hassle as possible to get back some of the trust their customers had put in them.
Hacking is always an unfortunate incident, and although poor security and negligence are to blame most of the time, sometimes there’s little that can be done but damage control.
The Craig Wright Theory
The final theory about who the wallet belongs to revolves around Craig Wright—the man claiming to be the notorious founder of Bitcoin, Satoshi Nakamoto—and lawsuit that was filed against him in February this year.
Wright is accused of defrauding the estate of Dave Kleiman of $5,188,266,427.50 in Bitcoin as well as intellectual property rights.
This theory is backed by an IP agreement made in 2011 which lists a Bitcoin wallet address that corresponds to the wallet containing over 100,000 Bitcoins.
It could be that Mr. Wright is responsible for the new activity in the account as he is known as one of the biggest holders of Bitcoin to date.
The wallet could belong to any one of the three parties mentioned above, but it could also belong to any one of the numerous big fish playing the crypto game.
Whether the predicted sell-off is imminent is a matter of waiting and seeing because, at this point, only time will tell.