Craig Wright recently admitted to actually having custody of at least one wallet related to a significant amount of criminal activity - not the least of which being an address holding $750 million worth of Bitcoin siphoned off from Mt. Gox several years ago.
Here is the article headline: https://cointelegraph.com/news/craig-wright-apparently-just-admitted-to-hacking-mt-gox
Dump of Librehash Research Related to the Matter
We made this observation of Craig Wright around May of last year (2019) when the news came out of the alleged wallets that he was in possession of during his trial with Dave Kleiman's estate.
For some reason, this fact was swept under the rug then - but we figured, for the blockchain industry's benefit that we would go ahead and carve out that brief analysis that we did (please be warned though - these are notes - so they're a bit choppy, but the analysis is cohesive and the links are still in tact ; we reference wallet addresses + TX IDs as well).
Link to the Original Court Filing Revealing This Information (via Scribd)
Document from 2012/2013 lawsuit involving CSW that has multiple addresses contained within:
Specifically, this document (yes the quality sucks ; please refer to it via Scribd first):
Wallet #3 (as well as all of the other wallets that were listed there), were [and are] attached to a considerable number of funds that lead directly back to Mt. Gox exchange.
Taking a Look at the Specific Wallet Addresses Mentioned
In the screenshot above (which isn't too clear), the five wallet addresses that Craig Wright identifies as belong to him in his court case with Kleiman's estate were:
Wallet Number One
The first wallet address presented by Craig Wright is relatively unremarkable with only 0.35 Bitcoin in total having ever passed through it
Wallet Addres Number Two
Things change a bit with the second address that Craig Wright submitted (168Rc6wJdL4chWhEUQwyywi4sHub6erf2s).
Below is a snapshot of the wallet address via blockchain.com:
As we can see above, this address received 2,198 bitcoins in total (a current value of $20.7 million altogether).
More important than where the funds went are where they came from.
If we take a look at the block height in which this address received the 2,198 bitcoins we can see that the first address that we covered above also received its 0.35 disbursement in the same transaction as well (precursor to a cluster analysis of these transactions):
Librehash blockchain analysis
After becoming aware of the fact that Craig Wright had attested to owning the five wallets in question for this report, Librehash performed an analysis on each to assess the origins and destinations (if any) of the transactions for each individual wallet.
Unfortunately, the photos from those blockchain analysis investigations are no longer in our possession - thus, we can no longer affirm that the second wallet is equally related to an exorbitant amount of criminal activity as the latter wallets that we are going to look at in this report.
However, in the coming weeks, as we start serious work on our R-coded blockchain-based (Bitcoin) transaction visualizer, we will be able to quickly re-do the work involved (originally) to discover which entities belong where.
Wallet Address Number Three
Out of all wallets allegedly belonging to Craig Wright (per his attestation), this one is perhaps the most troubling.
Specifically, we're referring to wallet address: 1FeexV6bAHb8ybZjqQMjJrcCrHGW9sb6uF
Taking a Brief Look at the Transaction History for Wallet Number Three
Once again, we'll go ahead and refer to blockchain.com (out of convenience, and nothing more), which shows the following:
As we can tell from the photo above, this wallet address contains *80,000 bitcoins.
This astronomical total represents $750,00,000 ($750 million) at current Bitcoin prices.
This wallet address has also already been the subject of much scrutiny in the community (which we'll link in the next section).
Community Investigation of the '1Fee' Address
As time has passed since the Mt. Gox theft, some of the more granular details surrounding the events that preceded, transpired and followed the fallout from Gox's announced insolvency have become increasingly opaque.
Fortunately though, it appears that at leaset some of these wallets were already the subject of substantial scrutiny by certain members of the blockchain community - specifically, the blog, 'wizsec' - which was instrumental in publishing research on how the hacked coins from Mt. Gox were distributed following the exchange's collapse.
A link to that research can be found here: https://blog.wizsec.jp/2018/02/kleiman-v-craig-wright-bitcoins.html
Covering the same concerning testament of ownership by Craig Wright of the affected wallets, Wizsec observes in his research (much the same as we did), that the wallets which Craig Wright claimed to possess ownership over were known (and proven) recipients of Mt. Gox hacked funds.
Intro Jed McCaleb?
While many are aware of the 'massive' hack that essentially rendered Mt. Gox insolvent, further probing into the nature of the 'hack' / theft of the coins shows that funds were siphoned gradually over time.
In addition to this gradual draining of funds from the exchange, there were also a few notable (and public) hacking incidents which deprived Mt. Gox of a substantial amount of funds.
In specific, the first 'hack' of Mt. Gox - which occurred right as Jed McCaleb was transferring ownership to Mark Karpeles - which resulted in a loss of approximately 80,000 bitcoins has long since been tracked down directly to the '1Fee' wallet address that Craig Wright enigmatically claimed ownership over.
An excerpt from WizSec's research can be seen below:
This report doesn't 'end' here, per se, but without the necessary supplementary tools needed to not only comb through the blockchain (visually), but provide an assortment of screenshots for readers to allow them to easily follow along - the insight that can be gained form this report is somewhat limited.
In the near future, however, we do expect that we'll be able to leverage our publicly available blockchain on-chain transaction analysis explorer (free; no up-charges / premiums) to provide a much more thorough (and excorciating) overview of the wallets in question for this report.
Until then, stay tuned.