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Mystery wallet burned $1M Bitcoin after depositing with custodian

Blockchain analysis tied five wallets that later destroyed their Bitcoin to common ownership, with funds traced back to Mt. Gox.

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Cointelegraph reports that a dormant Bitcoin wallet, inactive for nearly 12 years, moved about $1 million worth of BTC through a large crypto custodian in March, only to have nearly the same amount returned about three weeks later.

Within two months of the return, the Bitcoin was deliberately destroyed, according to Cointelegraph, with Bennet describing the outgoing transfer as 20.00010537 BTC to “a custodian of some kind,” and the retrieved amount coming back slightly reduced.

The broader pattern centers on an additional mystery from May, when Cointelegraph says 107 BTC were burned, worth roughly $8.5 million at the time.

Chainalysis analysis cited by Cointelegraph suggests the five wallets involved showed strong indicators of common ownership, were funded on the same day in April 2014, and sent similar dollar equivalent BTC deposits to the same centralized exchange address, with much of the traceable source funds linked to Mt. Gox.

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