Bitcoin Forum

On December 23 a Missouri court ordered a wind down of Butterfly Labs and they began a refund plan…..now here is my theory…I was looking at the blockchain and came across a 5000 btc utxo taken incrementally down to 0….it was sold off continuously. It took me to here.

https://blockchain.info/address/12WRnQR85ZUT7dhmaHBNL5dde2QLYieW6v

Activity on that address started back up on 12/23 the day the courts provided control again. Ive tied it to butterfly labs because a OP_RETURN said paycoin.com linked to Josh Zerlan an employee of butterflylabs.

What is scary is another 90000 unspent coins reside here also controlled by butterfly labs.

https://blockchain.info/address/1B9KrM7bjhJ42qJSWr1KJrNTAP1SNGMpJu



More discussion: http://www.reddit.com/r/Bitcoin/comments/2sdwf8/butterfly_labs_is_the_culprit/

Oops... seems real. Josh Zerlan is the culprit once again, but for all the wrong reasons.

You do know that they continuously shift their bitcoins to avoid attracting too much public attention to a particular wallet ?
And I dont really think that selling off $2.7 mil (correct me if I am wrong) in bitcoins can cause a market to crash from 600 to 180 even if it was done in the same day.

MM interesting .. You can thank him for chance to buy cheap coins !

This makes me sick Josh Zerlan & BFL robbed me 80BTC with the monarch scam >:( and now they are crashing Bitcoin to hurt me more, the BFL abuse is never ending! This motherfucker has been manipulating bitcoin price & fucking over the community for years. This Big Fuckin Liar Josh Zerlan has cost me personally over $100,000. Fuck BFL, Fuck Josh Zerlan, Fuck....

Well ironically it is people like you who fund his treasury.

No offence, Josh is rich today because greedy people (not you) wanted to cash in on something that is virtual. Clueless people (like you) fell into the trap and lost their investment. Well not completely clueless, you must have known BFL's reputation starting from their first Jalapeno orders.

I am notorious for buying stupid shit. Things like I have a $3000 PC with $700 3D monitor ;D. Dunno why I want top of the line tech bullshit. At least I didn't buy a minirig, I would love to hear from people that spend 3000BTC :o on that! I admit buying 6 30GH miners back in the day, I had fun playing with them but lost a lot of money. I never bought monarch to get rich it was just for fun, I knew it wouldn't be profitable. I just wanted it for the hell of it but I waited over a year & never received it. I paid 96 btc to buy 2 monarch & got refunded 16BTC :-[ because of unfortunate BTC/USD exchange rates. I also bought avalon & bitmain gear. I have quit mining months ago, it was fun while it lasted but now it's not worth running any mining equipment, you end up with higher electrical bills then you can generate in btc  :D

Also I dont see a point why they would attempt to dump so many BTC on same day. They could do in batches for say 10 days.
Dumping at one shot not only affects the market but will affect themselves as well. (or a i wrong in my analysis?)

They are not dumping or doing anything on their will. They are simply doing what court is ordering them to do. Plummeting BTC price hurts Josh as well just like it hurts us. But it does not hurt the court which ordered it. Court is committed to the public to refund them as soon as possible. So they gave this verdict. If Josh can recover the amount in FIAT, what he has to refund, then it is fine. Otherwise court may order him to be jailed.

I wonder what effect will the auction that will happen soon in the next 2-3 months will have on the price.

Weak hands will sell and strong hands will buy... that's all :)

I am not sure if it really will be an auction.

There is no one reason for the crash. It was on a downtrend for a long time and sometimes there will be crashes like this followed by periods of relative stability.

True. I would like to believe that the price cannot be influenced so much by one event /company.

While this might not be the ONLY reason Bitcoin price went down, it might be one of the primary factors.

I'm surprised no one dug it out before. Such a major exchange of coins cannot go unnoticed for long.

And if this is true, I'm actually relieved that price fall didn't have anything to do with loss of interest in market or lost demand. It just means ample supply on the sell side.

Last year bitcoin lost market cap of around a billion dollar or more. But, the investment to bitcoin businesses has been a billion dollar or more as well... Bitcoin is not going anywhere anytime soon. Give some time to the little baby ;)

A lot of people call that price correction. Not sure what actually caused the price to go down. But it wasn't just one factor.