According to a report by blockchain intelligence firm Arkham Intelligence, Aleksey Bilyuchenko, the hacker who broke into the Mt. Gox exchange, transferred 1,300 Bitcoins (BTC) worth approximately $114 million to an unknown exchange in the past week. This large-scale transfer of Bitcoin has exacerbated market volatility and raised concerns that the Bitcoin sell-off may not stop until 2026.
The hacker's wallet is suspected of falling into the control of Russian authorities.
Arkham data shows that these wallets still hold approximately 4,100 bitcoins, worth about $360 million. Since the distribution began in October, the entities involved have sold approximately 2,300 bitcoins, indicating that a highly planned liquidation operation lasting several months is underway.
Arkham analyst Emmett Gallic pointed out that the latest wave of transfers was not a sudden panic sell-off, but rather a continuation of the existing "controlled distribution" pattern. Entities associated with Bilyuchenko have deposited another 1,300 bitcoins into an unknown exchange in the past 7 days, bringing the total amount sold to 2,300 bitcoins.
This rhythmic transfer pattern can be traced back to October of this year, when Gallic discovered that 8,000 bitcoins related to the WEX/BT Ce exchange case had apparently fallen into the control of Russian authorities. The specific entity identified was the Third Department of the Second Division of the Central Security Directorate of the Federal Security Service (FSB) of the Russian Federation. The bitcoins were slowly and systematically released into the market through multiple unknown exchange accounts.
Since mid-October, Bilyuchenko's related funds have been continuously liquidated in small batches, with 110 bitcoins flowing into exchanges in just two days in early November. Gallic points out that it is currently impossible to confirm whether Bilyuchenko is still serving his sentence in Russia or whether he still has actual control over these funds. Although the Moscow court has seized most of his other assets, the structural arrangement of the fund flows indicates that there is a clear decision-making and execution mechanism behind it.
Mt. Gox was hacked and more than 640,000 bitcoins were stolen, making it the worst cryptocurrency theft of the year.
Bilyuchenko's criminal record dates back to the infamous 2011 Mt. Gox exchange hack. In June 2023, the U.S. Department of Justice indicted Bilyuchenko and his accomplice, Aleksandr Verner, accusing them of illegally accessing Mt. Gox servers and stealing approximately 647,000 bitcoins between 2011 and 2014. At the time, Mt. Gox was the world's largest Bitcoin exchange, and the theft resulted in significant losses for thousands of users, raising serious questions about the security of Bitcoin.
Prosecutors allege that Bilyuchenko used stolen Bitcoin to help establish the BTC-e exchange, which became a major money laundering channel for global cybercrime groups. According to estimates by the U.S. Department of Justice, BTC-e processed over $9 billion in transactions during its operation, with approximately 1 million users, and funds originating from sources including hacking, ransomware, identity theft, and drug trafficking. Alexander Vinnik, the former operator of BTC-e, was deported to Russia in a prisoner exchange in February of this year.
Bitcoin's already troubled situation is compounded by increased year-end selling pressure.
At the market level, this outflow of Bitcoin related to the Mt. Gox hack has added further pressure to an already weak year-end market. Recently, Bitcoin has experienced significantly increased volatility due to holiday liquidity shortages, whale profit-taking, and deleveraging in derivatives. Perpetual contract open interest shrank by approximately $3 billion in a single day, and the price of Bitcoin (BTC) briefly fell below the $87,000 mark.
On-chain data shows that since the beginning of December, large wallets holding 10,000 to 100,000 Bitcoins have collectively reduced their holdings by approximately 36,500 Bitcoins, representing a market value of about $3.37 billion. This has been described by some analysts as "the weakest year-end performance in seven years." Meanwhile, Bitcoin spot ETFs have seen net outflows of approximately $650 million over the past four days, and BlackRock saw $157 million in redemptions in a single day, further exacerbating market selling pressure.
Bitfinex analysts warn that Bitcoin is currently facing significant resistance in the $94,000 to $120,000 range, with supply concentrated among high-level holders, creating a top-heavy market structure. With both legitimate whale and illicit funds exiting the market simultaneously, it may take longer for the market to digest the supply.
Many institutional investors have pinpointed 2026 as the recovery target, but analysts believe that as long as the 4,100 bitcoins associated with Bilyuchenko have not been fully released, this consolidation period could extend into early 2026, becoming a key variable suppressing the momentum of a bitcoin rebound.
This article, titled "Mt. Gox Hackers Transfer $114 Million in Bitcoin from Related Wallets, Suspected to Have Fallen into Russian Hands and Exacerbating Market Turmoil," first appeared on ABMedia, a ABMedia .
