Revealed: Look Who’s The 5th Biggest Bitcoin Whale!

Famous Blockchain detective PeckShield reported that there is a government behind the 5th largest Bitcoin wallet in the world.

5th largest Bitcoin wallet, controlled by this government

Cybersecurity firm PeckShield has reported in a surprising report that the wallet, which is the 5th largest Bitcoin whale in the world and contains around 94,643 BTC, is owned by the US Government. According to the report, these BTCs were a direct link to the 2016 Bitfinex Hack.

PeckShieldAlert’s findings show that ownership of the wallet is linked to the compromised address. Accordingly, 94,643 BTC is directly linked to the famous 2016 Bitfinex Hack. Last registrations date back to February 1, 2022. On that date, 567.5 BTC worth approximately $21.88 million flowed from 1CGA4 wallets to this specific address.

U.S.-linked crypto wallets aren’t the first to emerge

In 2022, PeckShield previously reported that the US Department of Justice had taken control of the account linked to the Bitfinex attack. DOJ’s action culminated in the seizure of a staggering $3.55 billion worth of Bitcoin. This further highlighted the magnitude of Bitcoin’s connection to the hack. The value of the stolen Bitcoins at the time of the attack was approximately $75 million.

Bitfinex exposes attackers

In a recent courtroom statement, 35-year-old New York resident Ilya “Dutch” Lichtenstein admitted to orchestrating the original 2016 cyberattack on Bitfinex. According to CNBC’s report, in a federal court in Washington DC, Lichtenstein pleaded guilty to laundering stolen Bitcoin. He also stated that he was involved in the robbery.

The events paint a nuanced picture of how law enforcement, the burgeoning Bitcoin market, and criminals interact. Details are emerging regarding the US Government’s alleged role in managing a sizable Bitcoin hoard. Thus, the importance of protecting cryptocurrencies comes to light. Interest in strengthening defenses against cyber threats is growing again.

How about Bitcoin? Is there a potential sale?

Bitcoin price established new supports below $26,000 in August. Meanwhile, miners are having a hard time. Recently, BlackRock became the second largest shareholder of the top four Bitcoin mining firms. This clearly meant that the investment management company saw the potential in BTC’s mining sector and had high expectations. The firm has recently increased its interest in the crypto space. In summary, these developments reflect confidence in the future of BTC.

In fact, BTC’s hashrate has already been on the rise for years. Coinwarz’s chart revealed that the hashrate chart has increased significantly over the past year. At the time of writing, Bitcoin’s hashrate is at 354.43 EH/s.

The increased hash rate indicates that more processing power is allocated for network security and verification. This has also caused the blockchain to increase in mining difficulty and even reach the ATH level. As we reported as Kriptokoin.com, analysts expect a price increase of up to 2x in a potential return with the hash rate.