Mystery surrounds why an OG burned $1M in Bitcoin

In March, someone moved $1 million worth of Bitcoin through a large crypto custodian. Three weeks later, almost exactly the same amount came back. Incredibly, less than two months after that, the Bitcoin was deliberately destroyed.

The wallet had been dormant for almost 12 years before it suddenly sprang back to life. Bitcoin educator Bennet noted it sent 20.00010537 BTC to “a custodian of some kind” before receiving it back again (minus $3 or so).

“The whole balance went out to what looks like an exchange hot wallet, and almost exactly the same amount came back three weeks later. Seven weeks after that, it was burned.”

The mystery BTC transaction is part of a wider enigma surrounding 107 BTC burned in May, worth roughly $8.5 million at the time.

New blockchain analysis shows that five wallets that ultimately destroyed their Bitcoin appear to have been controlled by the same person. It was likely an early Bitcoin holder who had funds on the collapsed Mt. Gox exchange.

But why on earth would anyone deliberately destroy millions of dollars worth of Bitcoin?

The BTC wallets behind the burn

The five addresses that eventually sent their Bitcoin to an unspendable address show “strong indicators of common ownership” according to Chainalysis.