A large amount of Bitcoin, which was seized as a result of a cyber attack on the crypto currency exchange Bitfinex in 2016 and was dormant for a while, was moved on April 14. This $ 620 million move worried market participants. This mobility is thought to have contributed to the downward movement of BTC last day.
Blockchain analytics bot Whale Alerts was the first to ring the bells of danger and highlighted dozens of transactions from wallets that were mostly passive since the 2016 cyberattack:
⚠ ⚠ ⚠ ⚠ ⚠ ⚠ ⚠ 1,241.37 #BTC (78,246,494 USD) of stolen funds transferred from Bitfinex Hack 2016 to unknown wallethttps://t.co/yLsJDXUBvE
— Whale Alert (@whale_alert) April 14, 2021
The largest transaction involved 1,241,3672 BTC, for which the cyber attacker paid about $ 45 in transaction fees and was worth over $ 78 million. Other transactions include relatively smaller transactions of 1.5 BTC. Cointelegraph found that 63 transactions were made in total and 10,050 BTC moved, worth over $ 620 million.
Although cyber-attacking cryptocurrencies are known to move occasionally between wallets, the transactions made the other day were the largest since the cyber attack. The cyber attacker carried 1 to 2 percent of the stolen cryptocurrencies in the past five years. The other day, it carried 8.3 percent of almost 120 thousand BTC stolen and worth more than 7.4 billion dollars.
It is difficult to predict the reason for these processes. Although some of the transactions were made between wallets known to be associated with the cyber attacker, most of the cryptocurrencies were transferred to newly created wallets. Some members of the community think it is almost impossible for the cyber attacker to sell these BTCs, as no major exchange will accept these cryptocurrencies. The cyber attacker sold 736 BTC in a Russia-based darknet marketplace in 2020, and some of the cryptocurrencies ironically returned to Bitfinex.
The fact that the cyber attacker will not be able to sell cryptocurrencies has prompted some Twitter users to think that the transactions in question were probably attempts by the short-position attacker to manipulate the market:
No, th e Bitfinex hacker can’t sell the #Bitcoin (not in any volume).
But he/she/they can move it to try to manipulate the market while they short it elsewhere …
— Alistair Milne (@alistairmilne) April 14, 2021
The search for the cyber attacker is still ongoing. Bitfinex promised a $ 400 million reward to those who provided information about the attacker last August.