Bitcoin markets are feeling added pressure after wallets linked to alleged Mt. Gox hacker Aleksey Bilyuchenko moved another 1,300 BTC—worth around $114 million—to unknown exchanges over the past week, according to blockchain intelligence firm Arkham.
These wallets still hold roughly 4,100 BTC, valued at about $360 million, and have now offloaded a total of 2,300 BTC since October. Arkham analyst Emmett Gallic described the moves as part of a “controlled selloff” rather than a panic dump.
“The entity related to Aleksey Bilyuchenko has deposited another 1.3K BTC ($114M) to unknown exchanges in the past seven days,” Gallic said. “Total sales have now reached 2,300 BTC, while substantial holdings remain intact.”
A Pattern of Gradual Distribution
This latest activity continues a systematic distribution first flagged in October, when roughly 8,000 BTC tied to the WEX/BTC-e case appeared to be under the control of Russian authorities, specifically the FSB. Bitcoin linked to BTC-e co-founder Bilyuchenko has been gradually sold through unknown exchanges since mid-October, sometimes in small amounts like the 110 BTC deposited over just two days in early November.
It’s unclear whether Bilyuchenko himself is still controlling these funds or remains in custody in Russia, but the structured nature of the sales suggests deliberate positioning rather than hasty liquidation.
A Criminal History Stretching Back to Mt. Gox
Bilyuchenko has a long criminal history tied to cryptocurrency. The U.S. Department of Justice charged him and co-conspirator Aleksandr Verner in June 2023 for laundering roughly 647,000 BTC stolen from Mt. Gox between 2011 and 2014.
After the theft, Bilyuchenko allegedly helped run BTC-e, a notorious crypto exchange that laundered funds for cybercriminals worldwide. BTC-e handled over $9 billion in transactions and served about a million users globally, processing proceeds from ransomware, hacks, identity theft, and drug trafficking.
Adding to Year-End Bitcoin Weakness
The recent BTC movements from Bilyuchenko-linked wallets add to market pressure already building from other “whale” selloffs and thin holiday liquidity. Bitcoin fell 1.12% below $87,000 today as perpetual open interest dropped $3 billion overnight, leaving the market vulnerable to sudden moves despite low leverage heading into Christmas.
Large holders with 10,000–100,000 BTC have collectively sold about 36,500 BTC, worth roughly $3.37 billion, since early December. Bitcoin ETFs have also seen significant outflows, including $650.8 million from BTC ETFs over four days, led by BlackRock’s $157 million withdrawal, and $95.52 million from Ethereum spot ETFs.
Analysts warn that Bitcoin is facing heavy overhead supply between $94,000 and $120,000, capping rebounds and making recovery more challenging—a scenario reminiscent of early 2022.
Looking Ahead to 2026
While many asset managers expect Bitcoin to regain strength in 2026, the ongoing Bilyuchenko selloff—with 4,100 BTC still to be distributed—could extend consolidation into the new year. Markets will need to absorb both regular profit-taking from whales and the methodical liquidation of these allegedly illicit funds before a significant recovery can take hold.
