6 hours ago
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- Coinbase executive Conor Grogan discovered transactions linking Satoshi Nakamoto to Cavirtex, a former Canadian crypto exchange now owned by Kraken
- Arkham Intelligence identified over 1 million BTC ($108 billion) connected to Satoshi through the “Patoshi Pattern”
- If Satoshi used Cavirtex, which had strict KYC policies in 2013, Kraken may have inherited identifying information during their 2016 acquisition
- A wallet labeled “1PYYj,” believed to be Satoshi’s, received Bitcoin from Cavirtex
- Kraken has only responded cryptically to these claims with “We are all Satoshi”
New evidence has emerged suggesting that Kraken, a major cryptocurrency exchange, might possess information about the true identity of Bitcoin’s mysterious creator, Satoshi Nakamoto, through its 2016 acquisition of Canadian exchange Cavirtex.
Conor Grogan, head of product business operations at Coinbase, revealed this week that he discovered on-chain transactions linking a wallet believed to belong to Satoshi Nakamoto with Cavirtex, a former Canadian cryptocurrency exchange that Kraken acquired in 2016.
-There are 24 documented outbound sends from these addresses
-The most popular destination address was to 1PYYj
-Incredibly, this address received BTC from Cavirtex, a Canadian exchange. I believe this is the first documented onchain between a Satoshi linked wallet and a CEX pic.twitter.com/XNwwhQ3pSz
— Conor (@jconorgrogan) February 5, 2025
The discovery marks the first known instance of Satoshi potentially interacting with a centralized cryptocurrency exchange. This detail is particularly important because such exchanges typically require users to verify their identities through Know Your Customer (KYC) procedures.
Blockchain analytics firm Arkham Intelligence has strengthened the connection by identifying over 1,096,354 Bitcoin addresses linked to Satoshi’s mining activities. These addresses, containing approximately $108 billion worth of Bitcoin, were identified using the “Patoshi Pattern,” a method for tracking blocks likely mined by Bitcoin’s creator.
The wallet in question, labeled “1PYYj,” received Bitcoin from Cavirtex. According to Grogan’s analysis, this address is connected to funding another wallet known as “12ib,” which ranks among the largest active Bitcoin addresses.
Historical records indicate that Cavirtex maintained strict KYC policies as early as December 2013, when the alleged transaction occurred. The exchange was known for implementing “stricter KYC policies” similar to those used by major platforms like Coinbase and Kraken.
During this period, many cryptocurrency exchanges operated without formal identity verification requirements. However, Cavirtex appears to have been ahead of its time, implementing these measures before they became mandatory under Canadian law in June 2014.
The timing of these events creates an intriguing timeline. The transaction occurred around December 2013, six months before Canada officially required crypto exchanges to collect customer identification data. Cavirtex had already established robust verification procedures by this point.
When Canada introduced new crypto regulations in 2014, Cavirtex stated they were already maintaining a “proactive” KYC policy, suggesting they had collected user identification data during the period of Satoshi’s alleged activity.
Kraken acquired Cavirtex in 2016, potentially inheriting all customer data and records from the Canadian exchange. This acquisition might have included any identifying information collected from the wallet now believed to be connected to Satoshi.
Grogan’s analysis revealed 24 outbound transactions from addresses associated with the Patoshi Pattern. These transactions included 200 Bitcoin sent to an early Bitcoin faucet and a 500 Bitcoin transfer in 2010 to the 1PYYj address.
The research has led some experts to question previous theories about Satoshi’s identity. Grogan noted that these findings have decreased his confidence in the theory that cryptographer Len Sassaman was Bitcoin’s creator.
Kraken’s response to these findings has been limited to a post on X stating “We are all Satoshi.” The exchange has not provided additional comments about whether they possess or have access to any identifying information about Bitcoin’s creator.
We are all Satoshi 💜
— Kraken Exchange (@krakenfx) February 5, 2025
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