Mt. Gox Hacker Offloads $114 Million in Bitcoin as Selloff Escalates

In the latest developments, entities associated with the alleged Mt. Gox hacker, Aleksey Bilyuchenko, have transferred around 1,300 BTC, equivalent to about $114 million, to unidentified exchanges over the past week, indicative of an ongoing controlled selloff that has been in progress since October. Currently, these wallets still hold 4,100 BTC, valued at approximately $360 million.

Key Takeaways

Recent Activity: 1,300 BTC valued at $114 million were transferred to unknown exchanges by entities linked to Bilyuchenko.
Total Sold: Since October, a total of 2,300 BTC have been sold, with 4,100 BTC remaining in wallets.
Controlled Distribution: The transfers exhibit a systematic approach, not panic selling, aimed at maintaining anonymity.
Criminal Charges: Bilyuchenko faces charges for laundering approximately 647,000 bitcoins stolen from Mt. Gox between 2011 and 2014.
Market Pressure: This selloff contributes to existing market weaknesses as Bitcoin struggles with increased supply.

Ongoing Bitcoin Selloff from Mt. Gox Hacker

According to blockchain intelligence firm Arkham Intelligence, entities linked to Aleksey Bilyuchenko, the alleged hacker behind the Mt. Gox scandal, have recently transferred another 1,300 BTC (worth around $114 million) to anonymous exchanges. This recent activity is part of a larger trend, bringing the total sold to 2,300 BTC since the selling began earlier in October.

Arkham analyst Emmett Gallic noted that this marks an accelerated pace in a controlled selloff that has been ongoing for months. “The entity tied to Aleksey Bilyuchenko has deposited another 1.3K $BTC ($114M) over the past week,” he explained, while pointing out that significant holdings are still in the wallets.

Structured Distribution Pattern

The recent transactions reflect a methodical approach to distributing assets, continuing a pattern identified by Gallic in October. Approximately 8,000 BTC linked to the WEX/BTC-e case were allegedly controlled by Russian authorities, specifically by the FSB.

Since mid-October, the Bitcoin owned by Bilyuchenko has been gradually liquidated through anonymous exchanges, with notable deposits of 110 BTC occurring within just two days in early November. While there is ambiguity regarding Bilyuchenko's status—whether he remains imprisoned in Russia or still has control over these assets—the nature of the transfers suggests a deliberate strategy rather than emergency selling.

Criminal History of Bilyuchenko

In June 2023, the U.S. Department of Justice formally charged Bilyuchenko and his associate, Aleksandr Verner, with laundering around 647,000 bitcoins stolen from Mt. Gox between 2011 and 2014. “Bilyuchenko allegedly used the illegally obtained funds from Mt. Gox to help establish the notorious BTC-e exchange, which facilitated money laundering for cybercriminals globally,” stated Assistant Attorney General Kenneth A. Polite Jr.

Court records reveal that on September 2011, Bilyuchenko and Verner gained unauthorized access to the Mt. Gox servers, which contained crucial crypto wallets at the time when Mt. Gox was the leading Bitcoin exchange utilized by thousands.

The stolen bitcoins constituted the bulk of customer holdings and were laundered via two additional online exchanges controlled by the duo. Bilyuchenko operated BTC-e from 2011 until law enforcement closed it in July 2017, collaborating with Alexander Vinnik, who was returned to Russia following a prisoner exchange with the U.S. in February.

Current Market Challenges for Bitcoin

The distribution linked to Bilyuchenko further adds to the supply pressure Bitcoin is facing amid broader selloffs from large holders, often referred to as "whales." Bitcoin is trading down 1.12%, slipping below $87,000. Additionally, perpetual open interest has seen a $3 billion decline overnight, increasing market vulnerability to sudden price shifts as Christmas approaches.

Wallets holding between 10,000 and 100,000 BTC collectively have decreased their positions by 36,500 BTC (approximately $3.37 billion) since early December. Analysts suggest this is contributing to what is being termed Bitcoin's "weakest year-end performance in seven years."

Moreover, Bitcoin exchange-traded funds (ETFs) have seen significant outflows, with $650.8 million pulled over four days, and Ethereum ETFs experiencing $95.52 million in net withdrawals.

Bitfinex analysts caution that Bitcoin now faces "a substantial headwind" from a dense supply cluster built up by leading buyers between $94,000 and $120,000. This trend has led to a top-heavy market structure, where attempts to rebound are often thwarted by sale pressures.

Despite the current turbulence, many asset managers are hopeful for a Bitcoin resurgence in 2026. Yet, with 4,100 BTC still on the market for distribution and ongoing targeted selloffs, there remains uncertainty regarding how this will impact market stability into early 2026.