Old Bitcoin Whale? Wallets See Flurry of Txs After Years of Inactivity

Old Bitcoin Whale? Wallets See Flurry of Txs After Years of Inactivity

Is it an old Silk Road vendor? A Ross Ulbricht address? A Mt. Gox trader-turned-hermit coming back on? Questions swirl for now as thousands of bitcoin linked to a parent address last scrutinized back in 2014 are now being sent and then reshuffled into dozens of subwallets.

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Your Move, Whale

Bitcoin linked to a parent address that once contained more than 100,000 BTC and that were last moved in 2014 to much ado are on the move again, with the owner seemingly using a script to move dozens of batches of 100 bitcoin and then into larger wallets of 999 BTC since August 27th.

On August 29th, 2018, a busy whale is seen moving one of many batches of 100 BTC from wallets not active since March 2014. Image via BlockTrail.

In 2014, speculation swirled in the wake of the Mt. Gox collapse that the parent address in question (referenced in Matt Odell’s tweet below) might be connected to the then-unfolding debacle. 

However, nothing definitive ever materialized on that front. More likely, it seems, the funds are connected to a former Mt. Gox trader. The “1933” address was first active on July 1st, 2011, receiving +40,000 BTC on that date — approximately one year after Mt. Gox first opened. In 2013, one BitcoinTalk user argued that the 1933 address was linked to Dread Pirate Roberts, a.k.a. Ross Ulbricht of Silk Road fame, though the verdict is still out on the nature of that connection.

The bitcoin in question had systematically been divided into smaller and smaller wallets, e.g. “60,000 coins then to 30,000 / 20,000 / 10,000 / 5,000 / 500 and now 100 coins” as u/sick_silk pointed out on Reddit, though, as mentioned above, the whale has already started shuffling the 100 BTC wallets back into larger wallets of 999 BTC. Considering the timeline of events, the hodler has a proportionate amount of hodlings of all the bitcoin forks that have taken place in the ensuing span, such as last year’s bitcoin cash (BCH) fork, raising their estimated collective crypto worth to somewhere in the ball park of $1 billion.

Also noteworthy is the fact that the 1933 address is mentioned in the much-contested April 2013 “agreement” between Dr. Craig Wright and Dave Kleiman. The authenticity of the document has long been debated in the space, with some bitcoiners arguing Dr. Wright was simply trying to fake a paper trail to legally link himself to hefty sums of BTC. At best, the validity of the purported agreement is unconfirmed.

What’s the Meaning of This New Activity?

While it’s impossible to deduce anything conclusively from the information that’s available, some theories have started to gain some traction, though, of course, they’re not currently verifiable.

For example, some have speculated that the whale at hand is consolidating bitcoin into subwallets in order to prepare their hodlings for cold storage. Others have suggested the user is organizing the BTC for over-the-counter trades, as some companies require the selling of round batches of coins.

Likewise, some have wondered if the transactions aren’t just rudimentary tumbles, with the owner potentially trying to obfuscate the original source of the coins with growing numbers of in-between transactions.

Whatever’s the case, traders in the space will have their eyes on the associated wallets in the coming weeks and months. If these bitcoin were to hit any exchanges, the ensuing sell pressure could make a significant impact on the cryptocurrency’s price.

What’s your take? Let us know what you think this whale is up to in the comments section below. 

Images via Pixabay, BlockTrail

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