Galaxy Digital, global leader in digital assets and AI infrastructure, has announced that it sold more than 80,000 Bitcoin, worth over $9 billion, on behalf of a long-term holder. The firm announced this mega transfer, which ranks among the largest-ever BTC sales seen on-chain, on July 25. 

The transaction was carried out as part of the client’s estate planning, Galaxy stated. The client reportedly held the coins for more than a decade, having acquired them in Bitcoin’s early years. 

Galaxy Digital’s $9B BTC Sale Linked to MyBitcoin Wallet

On-chain analysts have quickly connected the sale to wallet addresses associated with MyBitcoin, a crypto platform that collapsed in 2011 following a major hack. The platform, one of the earliest Bitcoin wallet services, shut down with many coins still unaccounted for. In fact, blockchain activity shows that the wallets had been dormant since April 2011, right before MyBitcoin shut down. 

CryptoQuant CEO Ki Young Ju highlighted the age and origin of the coins. He noted the possibility that they may have belonged to Tom Williams, the anonymous MyBitcoin founder, or even the hacker behind the platform’s downfall. 

The recent transfer of 80,000 BTC, dormant for 14 years, came from wallets originally hosted by MyBitcoin.

The wallets had been inactive since April 2011, before MyBitcoin collapsed in a hack that July. It likely belongs to the hacker or the anonymous founder known as Tom… pic.twitter.com/Gj8R7xw0SA

— Ki Young Ju (@ki_young_ju) July 25, 2025

The origins of the funds have led to speculation about how Galaxy verified the client’s identity. Given the defunct platform’s controversial history, some analysts worry the firm may have inadvertently facilitated a sale from a bad actor.

Market Reacts to Sudden BTC Liquidity Event

Despite initial fears following the $9B BTC sale by Galaxy Digital, the price of Bitcoin has quickly rebounded from around the $115,000 range to over $118,000, as of this writing. However, while the quick recovery shows maturity in Bitcoin’s liquidity, the sell-off has sparked various concerns among institutional watchers. 

In a recent post on X, Eric Balchunas, a Bloomberg ETF analyst, questioned the urgency behind the move. The analyst suggests that the move might reflect a loss of faith or an unexpected financial need. 

“Why is someone selling $9b in one shot?. The slippage cost is prob insane and…have they lost faith that badly they want to take that much money out that quickly? Unless they planning buying the LA Lakers in cash it seems odd/even concerning no?” Balchunas asked. 

Other experts have also echoed the same concern and feel that Galaxy Digital could have looked at a more incremental distribution without shaking the market. Nevertheless, the absence of a sharp price correction has lent credence to the argument that Bitcoin is capable of handling big transfers more efficiently than in earlier years.

Analysts Split on Galaxy Digital’s Compliance and KYC Policies

The crypto community is still concerned about the identity of the $9 billion Bitcoin seller, particularly due to connection to MyBitcoin. But so far, Galaxy Digital has not disclosed the client’s name or further background details, only describing them as a long-time holder and early adopter. Regardless, some analysts believe that the firm did its due diligence in terms of KYC checks before the transaction. 

Head of Strategy at 21shares Eliezer Ndinga, for instance, believes that the transaction must have been subject to compliance verification. Ndinga argues that Galaxy would not put itself at risk by allowing such a large transaction without Anti-Money Laundering checks and Know Your Customer (KYC) procedures.

“It’s a behavior akin to a hacker but if that amount was processed by Galaxy I assumed they had a stringent KYC process to enable transaction to go through,” Ndinga remarked. 

Even as debate continues over its implications, the transaction itself – funded with 80,000 satoshis and embedded with an on-chain message – has drawn praise from some in the community for its transparency and symbolism.