Who is taking over? Mt. Gox hacker sells another $114 million worth of BTC, market liquidity under pressure

Arkham Intelligence, a blockchain intelligence company, has detected that wallets associated with the core suspects involved in the Mt. Gox exchange hacker case have transferred 1,300 bitcoins to unknown trading platforms over the past week, worth approximately $114 million. Since the systematic sell-off began in October 2025, this entity has sold a total of 2,300 bitcoins and still holds about 4,100, valued at $360 million. The sell-off coincides with multiple pressures facing the Bitcoin market: widespread reduction by whale addresses, continuous outflows from spot ETF funds, and a significant decline in market liquidity toward the end of the year. Analysts point out that this “orderly liquidation” pattern, combined with heavy technical resistance levels above, could extend Bitcoin’s consolidation phase into early 2026. This event is not only a release of long-standing assets but also a deep test of the current market’s structural resilience.

A New Round of Orderly Sell-Off: $114 Million Bitcoin Flows into Exchanges

As 2025 draws to a close, the shadow of cryptocurrency market history reemerges. According to real-time tracking by blockchain intelligence firm Arkham Intelligence, a Bitcoin wallet linked to Alexey Bilyuchenko, a core suspect in the decade-old Mt. Gox hacking case, has executed a new large-scale asset transfer in the past seven days. Up to 1,300 bitcoins have been sent in batches to unknown cryptocurrency exchanges. Based on the market price at the time of transfer, this batch is worth approximately $114 million.

Arkham analyst Amit Galick noted in the report that this transfer is not an isolated event but a recent step in a systematic asset disposal plan that began in October 2025, with recent activity showing signs of acceleration. Since the plan’s inception, entities related to Bilyuchenko have sold a total of 2,300 bitcoins on the market. However, on-chain data transparency also makes it clear that it’s far from a complete relief—about 4,100 bitcoins remain “dormant” in the related wallets. At current prices, this “suspended sword” is worth up to $360 million, which could be converted into new market selling pressure at any time.

The most notable feature of this sell-off is its “orderly” nature. Unlike panic-driven “dumping,” the funds are carefully routed through methods that obfuscate the final flow of funds. This pattern strongly suggests that the operation is driven by a well-thought-out strategy, possibly aimed at minimizing market impact during asset realization or complying with certain legal or asset disposal procedures. The actual control over these large assets remains uncertain. Although a Moscow court has frozen most of Bilyuchenko’s other assets, the ownership and control status of these bitcoins is not fully clear. Some analysts believe that these funds, related to the now-defunct BTC-e exchange, may already be under the actual control of Russian authorities.

Historical Roots: From Mt. Gox Theft to Global Money Laundering Network

To fully understand the profound impact of this current sell-off on market psychology, we must revisit a landmark trauma in cryptocurrency history. In June 2023, the U.S. Department of Justice unsealed an indictment revealing detailed allegations against Alexey Bilyuchenko and his accomplice Alexander Vernik. The core charge is that between September 2011 and May 2014, they conspired to launder approximately 647,000 bitcoins stolen from the then-largest Bitcoin exchange, Mt. Gox. Even today, this number is enough to shake the market, and at the time, it nearly represented all customer assets of Mt. Gox.

“Using illicit proceeds stolen from Mt. Gox, Bilyuchenko is accused of helping to establish the notorious BTC-e virtual currency exchange, which provided money laundering services for global cybercriminals,” said Kenneth A. Polite, Assistant Attorney General of the U.S. Department of Justice, at the time. The indictment details that the theft occurred as early as September 2011, when they infiltrated Mt. Gox’s wallet server. Most of the stolen bitcoins were later laundered through addresses controlled by co-conspirators on two other exchanges, completing a key step in the criminal chain.

Key facts about the Mt. Gox hacker case and the BTC-e criminal network

• Number of involved bitcoins: approximately 647,000 (most of the user assets at the time)
• Hacker activity period: September 2011 to May 2014
• Main money laundering platform: BTC-e exchange (operated from 2011 to 2017)
• BTC-e involved scale: processed over $9 billion in transactions, serving about 1 million users worldwide
• Illegal activities involved: laundering proceeds from hacking, ransomware, identity theft, drug trafficking, and other crimes

Bilyuchenko’s “business” did not stop at theft. He is accused of operating the BTC-e exchange from 2011 until its joint shutdown by international law enforcement in July 2017. The exchange had close ties with another key figure, Alexander Vinnik (who returned to Russia in February 2025 through a U.S.-Russia prisoner exchange). The U.S. Department of Justice estimates that BTC-e handled over $9 billion during its operation, with about 1 million global users, many of whom had assets derived from various cybercrimes. Therefore, the currently being sold bitcoins are not only the result of a security breach but are also tightly linked to a vast, shadowy global criminal financial network. Every on-chain movement silently reminds the market that the early wild growth of crypto left behind complex legal and moral dilemmas, which are still seeking solutions.

Year-End Market Pressure: Whales Exit, ETF Outflows, and Liquidity Crisis

The sell-off of assets related to Mt. Gox coincides with one of the most vulnerable periods in the Bitcoin market. Multiple factors combine to create what analysts call the “weakest year-end performance in seven years.” Foremost among these is the collective behavior change of Bitcoin “whales.” On-chain data shows that addresses holding between 10,000 and 100,000 bitcoins have reduced their holdings by 36,500 bitcoins since early December, worth nearly $3.37 billion at current prices. This consistent profit-taking or risk-reduction activity injects ongoing internal supply pressure into the market, significantly dampening upward momentum.

The spot Bitcoin ETF, seen as the “main artery” of traditional capital inflows, also shows worrying signs of reversal. Over the past four consecutive trading days, the overall net outflow from U.S. spot Bitcoin ETFs has reached $650.8 million. Notably, the BlackRock-backed IBIT fund experienced a single-day net outflow of $157 million. Not only are Bitcoin ETFs losing funds, but newly approved Ethereum spot ETFs have also failed to attract capital, with a total net outflow of $95.52 million, and no inflows into any of these products. The outflow of ETF funds directly withdraws institutional buying support and reinforces market pessimism about “tactical withdrawals or wait-and-see by institutional investors” toward year-end.

Technical analysis is equally grim. Bitfinex analysts warn that Bitcoin is currently facing a “dense supply cluster” between $94,000 and $120,000, formed by previous high-level buyers, creating a significant overhead resistance. This structure makes the market appear “top-heavy,” where any rebound attempt could quickly trigger stop-loss selling, similar to the repeated failed rebounds at the start of the 2022 bear market. Additionally, derivatives market data shows that open interest in Bitcoin perpetual contracts has plummeted by $3 billion overnight. While reduced leverage lowers the risk of cascading liquidations, it also worsens market depth, making price swings more pronounced amid the already thin liquidity at year-end. The Mt. Gox hacker’s sell-off is landing in this “perfect storm” of internal and external negative factors, amplifying its adverse impact on market sentiment and prices.

Outlook: Absorbing Supply and Rebuilding Market Confidence

Faced with legacy sell pressure, phased withdrawal of institutional funds, and fragile technical structures, where will Bitcoin go in 2026? Despite the short-term challenges, most mainstream analysis institutions remain constructive about the long-term outlook. The consensus is that the market needs time and volatility to fully digest current negative factors and to build a new equilibrium during this process.

The immediate priority is to clear the “dam” of overhead resistance. The dense accumulation of positions between $94,000 and $120,000 is the first and most critical obstacle for an upward breakthrough. It is expected that in the first half of 2026, any effective rally will likely encounter strong selling resistance in this zone. The market may need to go through repeated range-bound oscillations, “trading time for space,” gradually exhausting the patience of holders, prompting some to take profits at lower levels, and laying a foundation for future growth. Meanwhile, the remaining 4,100 bitcoins in the Mt. Gox-related addresses, along with other potential “sleeping assets” from similar historical cases, will continue to serve as visible, quantifiable potential supply sources, hanging over the market and suppressing excessive speculative enthusiasm.

However, potential positive catalysts are also brewing. Institutions like VanEck point out that Bitcoin in 2025 has shown a significant price divergence—lagging about 50% behind the Nasdaq 100 index and other traditional risk assets. This “valuation gap” itself could set the stage for Bitcoin to become a leading asset in 2026. If macroeconomic conditions shift (e.g., the Federal Reserve begins a new rate-cut cycle) or the crypto industry itself makes major breakthroughs (such as establishing clear regulatory frameworks in major economies), the suppressed allocation demand could quickly rebound. The current deep correction and market cleansing are essentially clearing obstacles and accumulating energy for the next upward cycle driven by healthier fundamentals.

For market participants, the current strategy should focus on “defense” and “observation.” Before Bitcoin effectively breaks through the key resistance zones mentioned above, the market is more likely to remain in wide-range oscillations. It is recommended to allocate core positions in Bitcoin to reduce overall volatility risk and to capture trend opportunities in leading assets. As for altcoins, caution is advised, because in the current liquidity-tight cycle, funds are showing a clear “siphoning effect,” shrinking toward core assets like Bitcoin and Ethereum. The traditional “altcoin season” narrative is unlikely to materialize in the short term. Overall, the beginning of 2026 will be a process of digesting historical burdens, restructuring internal dynamics, and waiting for new narratives to emerge. The Mt. Gox asset sell-off acts as a mirror reflecting the painful path toward market maturity. Only by successfully passing such stress tests can the market move toward a more solid foundation for future development.