On January 5th, an anonymous Bitcoin user transferred 26.9 BTC worth $1.2 million to the Genesis wallet owned by Satoshi Nakamoto, the pseudonymous creator of Bitcoin. This unusual transaction has sparked intense speculation in the crypto community about its purpose and origins.
- Someone transferred 26.9 BTC ($1.2 million) to the Bitcoin Genesis wallet associated with Satoshi Nakamoto, the mysterious creator of Bitcoin
- The funds seem to have originated from Binance and went through a complex series of transactions before ending up in the Genesis wallet
- The wallet had been inactive since Nakamoto’s disappearance in 2010 and previously contained 50 BTC that had risen to 72 BTC from gifts
- Nakamoto likely still controls the private keys to the Genesis wallet and other early Bitcoin wallets containing huge amounts of BTC
- The reason for the transfer is unknown – theories range from Nakamoto moving funds to someone burning funds or using them in a pump-and-dump scheme
The funds seem to have originated from cryptocurrency exchange Binance and were routed through a complex series of transactions across 12 wallets before finally landing in Satoshi’s wallet. This circuitous path makes it difficult to definitively trace the source.
Someone just sent Satoshi's genesis wallet $1.2 mil. in BTC.
Why?? The only thing that makes any sense is that the sender is flushing Satoshi out.
Under the new IRS rules, you have to report any receipt of crypto over $10k. So, Satoshi has to dox himself, OR break the law. pic.twitter.com/S4vBkSdX21
— Jeremy Hogan (@attorneyjeremy1) January 7, 2024
The Genesis wallet was created alongside the Bitcoin network itself and contains the mining reward from the first ever Bitcoin block. After Nakamoto disappeared in 2010, it lay untouched containing 50 BTC from that initial mining activity until Nakamoto’s birthday in 2023, when gifts from Bitcoin users increased its balance to 72 BTC.
This new deposit takes its holdings to almost 100 BTC worth approximately $4.3 million. While a sizable amount, it pales in comparison to the 1.1 million BTC under Nakamoto’s control across many early Bitcoin wallets.
Of course, the question on everyone’s mind is why anyone would deposit such a large sum into an inactive wallet likely lost to its creator forever. The most likely explanations fall into a few categories:
- Nakamoto is moving their own funds – either re-entering the scene or just consolidating holdings
- The funds are “burnt” to show credibility or seriousness for some undisclosed scheme
- The deposit forms part of a pump-and-dump manoeuvre to spur short-term Bitcoin price rises
- The money represents illegally obtained funds that the sender wished to discard
While the lack of information makes it essentially impossible to know the real purpose behind this transaction, it has certainly reopened speculation about Satoshi Nakamoto’s identity and control over the Bitcoin ecosystem. It seems the crypto community will be puzzling over this latest twist in the mysterious Satoshi saga for some time to come.
The transaction also comes on the heels of positive news for Bitcoin’s price recovery, with the long-awaited approval of Bitcoin ETFs expected to bring new investments into the space.