Galaxy Digital’s $9B Bitcoin Sale Sparks Hacker Theories
2025-07-27
A massive $9 billion Bitcoin transaction facilitated by Galaxy Digital has reignited debate across the crypto world. On July 25, 2025, the well-known crypto trading firm announced that it had sold over 80,000 Bitcoin on behalf of what it described as a “Satoshi-era investor.”
But as blockchain analysts took a closer look, questions quickly emerged. The coins originated from wallets active in 2011, the same year the now-defunct MyBitcoin wallet platform collapsed under allegations of theft.
This has led to growing speculation that Galaxy may have unknowingly facilitated the liquidation of coins tied to one of crypto’s earliest and murkiest hacks.
A Historic Transaction Triggers Suspicion
According to Galaxy Digital, the sale was conducted for an anonymous long-term holder who acquired their Bitcoin over a decade ago. The firm’s statement framed the move as part of “estate planning,” a term often used for legitimate asset restructuring.
However, blockchain researchers quickly traced the origins of the 80,000 Bitcoin to addresses active in 2011.
Those same addresses have been linked by independent analysts to the MyBitcoin hack, one of the earliest major scandals in blockchain crypto history.
At the time, MyBitcoin, a popular online wallet, was abruptly shut down after claiming a security breach had led to the loss of thousands of BTC.
Although the value then was just a fraction of today’s prices, those same coins would now be worth nearly $9 billion. That scale has led to intense scrutiny, especially given the gaps in transparency surrounding the Galaxy transaction.
Blockchain Analysis Fuels Theories
Ki Young Ju, CEO of blockchain analytics firm CryptoQuant, brought attention to the sale shortly after it occurred.
In a widely shared social media post, Ju noted that the wallets involved in the transaction had been dormant since April 2011. That timing, he pointed out, aligns with the final days of MyBitcoin before it collapsed.
Ju further suggested that the Bitcoin may have been held by either the hacker who exploited MyBitcoin or by the service’s mysterious founder, known only as Tom Williams.
His conclusion: “Galaxy bought the Bitcoin from them”, raising concerns about whether any proper checks were made before completing the deal.
Data from Arkham Intelligence also supports this timeline, showing that all 80,000 BTC moved between July 4 and July 5 into eight new addresses before the eventual liquidation. Despite this, Galaxy’s official announcement remained vague, providing no details on the source of the assets.
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Galaxy Remains Silent on Coin Origins
In its official press release, Galaxy Digital avoided addressing any links to the 2011 incident. The firm only described the seller as a long-time Bitcoin holder and emphasized its role in simply facilitating the sale.
There was no indication that the company performed forensic checks to verify the origin of the funds.
This has led to criticism from segments of the crypto community, particularly as Galaxy Digital stock is closely watched by investors who value transparency in Galaxy trading operations.
Given the potential legal and ethical questions, some argue that Galaxy should have done more to disclose whether the assets were tied to known incidents in crypto galaxy history.
Yet despite the controversy, Galaxy’s $9 billion trade has so far gone unchallenged by regulators.
No statements have been released by major agencies such as the U.S. Securities and Exchange Commission (SEC), the Department of Justice (DOJ), or the Financial Crimes Enforcement Network (FinCEN).
Impact on Bitcoin Price and Market Reaction
Interestingly, the announcement had minimal impact on the broader crypto price market. On July 25, just after Galaxy revealed the transaction, Bitcoin traded around $117,300, a minor 1% dip from the previous day. By July 26, the price rebounded to $117,700, rising about 1.2% within 24 hours.
This stability suggests that traders were either unfazed by the sale or confident that the liquidation had been absorbed through private deals rather than public markets.
The calm reaction stands in contrast to the often volatile nature of crypto news, especially when it involves large coin movements.
A Look Back: The MyBitcoin Mystery
To understand why this event has triggered so many questions, it's important to revisit the MyBitcoin story. Launched in the early days of Bitcoin, MyBitcoin operated as a custodial wallet, meaning users entrusted the service with their private keys.
In August 2011, MyBitcoin’s operator claimed that hackers had stolen a large portion of its funds.
Back then, the loss was valued at roughly $250,000. But as Bitcoin’s price surged in later years, many suspected that the real amount lost could have been far higher, possibly tens of thousands of coins.
Whether the founder’s story was true or not, MyBitcoin shut down permanently, and no formal law enforcement resolution was ever made public. Now, with these exact-era coins suddenly reappearing in 2025, speculation is inevitable.
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FAQ
What is Galaxy Bitcoin?
"Galaxy Bitcoin" refers to the Invesco Galaxy Bitcoin ETF (BTCO). This is an exchange-traded product that issues shares which trade on the Cboe BZX Exchange. It allows people to invest in Bitcoin through a traditional stock market format.
Is Galaxy Digital a good investment?
Valuation metrics suggest that Galaxy Digital Inc. may be undervalued, making it a potentially good choice for value investors. Its strong financial health and growth outlook show it has the potential to perform better than the overall market.
How many BTC does Galaxy Digital own?
Based on their 2022 financial statements, Galaxy Digital Holdings LTD is estimated to hold approximately 12,830 bitcoins.
Who is the CEO of Galaxy Digital?
Michael Novogratz is the CEO of Galaxy Digital. He recently stated that Ethereum (ETH) has the potential to perform better than Bitcoin (BTC) in the next three to six months as institutional money starts to move more into Ethereum.
What does Galaxy Digital do?
Galaxy Digital Capital Management LP (Galaxy Digital) is a global leader in digital assets and data center infrastructure. They provide solutions that help speed up advancements in both finance and artificial intelligence.
Disclaimer: The content of this article does not constitute financial or investment advice.
