7 Unsolved Mysteries of Cryptocurrency

There is nothing we love more than a good mystery. Even better, one of the unsolved mysteries of the cryptocurrency world. That’s why we took a look at some of the greatest unsolved cases that were plaguing us and put together a list of the ones we thought might need a little more digging. After all, we know there are tons of mysteries about where investor funding goes for ICO’s, who is hacking our favorite exchanges, or even who is solving a certain block. Likely the most obvious unsolved mystery being the true identity of Mr.Satoshi Nakamoto himself.

With many of these unsolved cases still facing speculation, we thought now was as good of a time as ever. We hope you have your magnifying glasses out. The mystery might just be solvable. After all, it’s elementary my dear Watson! Or is it? 

1. The $1 Billion Bitcoinaire

Crypto theft continues to be widespread with $673 million being stolen in 2018 which works out to $9 million stolen every day. This number is believed to be decreased as the security for the underlying technology improves. However big hacks put big exchanges in jeopardy. For those who remember, the great case of the Mt.Gox hack might ring a bell? For those who haven’t, this bitcoin exchange was notably one of the biggest players in the industry handling 70% of all bitcoin exchanges. With so many heavy-duty transactions occurring, a $2 M hack that resulted in an extreme loss of funds made massive headlines. Pretty tragic we’d have to admit. However, with our first mystery, some of these funds actually might just be accounted for.

A Link To The Mt. Gox Hack

Back in September 2018, a Bitcoin address containing roughly 300,000 BTC (worth over $1B dollars) was activated. This address then went and transferred thousands of these Bitcoins to different addresses. Prior to this, the wallet hadn’t been active since 2014, which coincidentally was the same year as Mt.Gox. Could there be some kind of link? Like some of these funds being a part of the Mt. Gox funds? This is just one theory, others have claimed that there have been links between the funds and Dread Pirate Roberts, aka the Silk Road’s enigmatic proprietor. This also did not prove anything as funds were moved while this man was imprisoned. So this would suggest that if it was DPR he was not working alone. Still, others believe it might be the Craig Wright, the man who claims he is Satoshi Nakamoto (more on this to come).

If these don’t convince you, the last one just might. Some still believe that it actually might just be a rich kid in his parent’s basement trying to stir up trouble. To this day, we have never found out who the owner of this billion-dollar wallet really was. Scary to say, this isn’t the first occurrence either. This makes Bitcoin potentially very volatile for future investors.

2. The Real Identity of Satoshi Nakamato

This might be one of the most obvious and plaguing issues in the cryptocurrency world. The creator of the most used cryptocurrency, Bitcoin, is still yet to be named. All we know is that the person who created bitcoin goes by the name Satoshi Nakamoto. But not only do we not know who Satoshi is, but we don’t know how many people he represents. This is unfortunate as this name is also attributed to be the creator of the first-ever blockchain. The last words he left the crypto community with was that he had “moved on to other things,” and that bitcoin was “in good hands with Gavin and everyone”. This message was left back in the Spring of 2011. 

Possible Candidates

At one point we did think that the creator would be revealed, although we still can’t say for sure. However, what we do have is a list of potential candidates. The first one of these possibilities is; Craig Wright. Craig proclaimed that he was the Bitcoin creator and did this by presenting a pseudonym that shared the supposed origins of the Satoshi name. Second, on the list is Nick Szabo. For those of you who haven’t heard this name, Nick is a cryptocurrency enthusiast who published a paper “Bit Gold”. This paper was believed to be the precursor to Bitcoin. The main reason we believe that Nick might have been the creator is his unique writing style that closely resembled that of Satoshi.

Other candidates that have been up for consideration include Dorian Prentice Satoshi Nakamoto. When asked about Bitcoin his reply sparked a frenzy since his answer was “I am no longer involved in that. I cannot discuss it.” He later stated that he misunderstood the question and thought the interviewer was referring to his previous employment. The final candidate we have in the running is the first man to receive Bitcoin in a transaction. This man was Hal Finney. While these candidates all might make sense from certain perspectives we really can’t say for sure who Satoshi Nakamoto really is.

3. Why Justin Sun Really Cancelled His First Lunch With Warren Buffet

Third on our list of cryptocurrency mysteries is yes, a lunch cancellation. Back in May 2019, Warren Buffet hosted a charity auction for GLIDE. It was at this event that a man named Justin Sun bid $4,567,888 to have lunch with none other than the man himself. He later shared that it would be an honor to meet with this businessman. For those who don’t know Mr. Sun, you might’ve heard of one of the largest bitcoin networks in the world, Tron.

The company’s cryptocurrency continues to be ranked as the 14th highest cryptocurrency in the world, making Justin quite the wealthy man and business tycoon. That only leads us to ask why the Chinese crypto promoter would postpone his lunch with the man himself? Especially letting Buffet know, with just three days notice, by an announcement from the TRON foundation.

With a lot riding on this lunch, we are a little bit skeptical that this was just an ordinary change of plans. In Sun’s words, this was an opportunity “to bridge the divide between the blockchain industry and traditional investors”.

A Case Of The Kidney Stones

The 29-year old said he was suffering from kidney stones which would be a legitimate reason why. However, one Chinese business site suggests otherwise. Apparently Sun had been prohibited from leaving China. Why? Suspicions surfaced of illegal fundraising, money laundering, pornography distribution, and gambling. This one we might just consider solved since later pictures on Twitter suggests the crypto Tycoon actually did make it to San Francisco where his lunch with Buffet was supposed to take place.

So why the mystery? It is not uncommon for the authorities to take away a business leader who has engaged in fraud. It happened to a Chinese financier in Hong Kong and countless others. So the “disappearance” of Justin Sun might have had a little more to it. However, later articles have made claims that the Chinese government got involved with Justin Sun’s whereabouts due to the trade war that had been occurring between the United States and China. While this is also a reasonable explanation we still can’t say for certain.

4. The Mysterious Block Hash #528249

Who ever thought numbers were mysterious and scary. If not, you will certainly think so after the mysterious block 528249 cause panic with a block hash of 

00000000000000000021e800c1e8df51b22c1588e5a624bea17e9faa34b2dc4a

What’s the point? That is just an ordinary random string of numbers you might think. Unfortunately for you, you would be mistaken. This string of numbers is actually a virtually unsolvable block. So on June 19, 2018, when this block on the Bitcoin chain was mined, you could guess there was a little bit of a frenzy in the crypto community.  

This block was believed to be unmineable due to something called the E8 theory. This symbolizes the theory of everything which is a physics theory that attempts to explain the interaction of all forces in the universe using one model. This means even using enormous amounts of power to mine, it would take thousands of years to find this block. That leads us to one question? How could such a complicated block be created and who solved it?

The theories vary for the existence of this block. With Cornell professors suggesting that there are blocks that exist with a similar hash and even suggesting that the percentage of occurrence is likely around 3%. So not completely unreasonable. Some believe the Bitcoin creator himself (Satoshi Nakamoto) created this block. Others believe it happened to be a coincidence that someone was able to solve it.

5. Edward Snowden Owns Crypto

Do you remember a man named Edward Snowden? The term whistleblower might ring a bell. More specifically, you likely know Snowden as the guy who released NSA documents and must now take refuge in Russia. However, perhaps just as interesting as his past life is whether Snowden secretly has any cryptocurrencies of his own. His various opinions have us wondering. Most notably, Edward said he would never say it online and doesn’t think anyone should. He’s also pointed out errors in other cryptocurrencies like Monero. He makes the claim that this currency is actually quite “amateur” and noted some of the issues with the technology that would risk its privacy. Being a privacy advocate, Monero’s supposed traceability issues seem worrisome. He further adds that these design issues could put people like himself at risk.

Snowden Claims Bitcoin As A Good Buy

However, in other video clips, Snowden says maybe someone like me could have used Bitcoin when referring back to his own life. If this didn’t have some of us guessing, his more recent posts on social media might have confirmed our suspicions. Most recently with the drop in price, Snowden made the claim that Bitcoin has at times been a good buy. On March 13, Snowden tweeted: “This is the first time in a while I’ve wanted to buy Bitcoin.” But again we could loop back and note that despite his agreement with bitcoin’s mission to anonymously send money without a third party, he is very open in letting the world know about his apprehension towards its privacy. 

What do we think? After everything Snowden has been through do you think he’d put his trust in the blockchain? Or do we think he stands by his apprehension? Regardless of your opinion and his mixed reactions, we can still leave this as one of the greatest unsolved mysteries in cryptocurrency history.

6. The Infamous Coindash Hack

Next on our list, is the famous Coindash hack. For those who are newer to the game, you might know of a company referred to as Blox.io. Blox.io is a blockchain startup that focuses on creating a portfolio management platform. This platform would allow users to track their cryptocurrency investments. Back in July 2017, they hosted their very own Initial Coin offering (ICO) and raised over $7 million dollars for their project. But like anything, this was too good to be true. Shortly after the ICO began, a hacker gained access to its website.

After altering the Ethereum address, the hacker collected the funds. This action was deemed irreversible, making it impossible to return these stolen funds. Some believe this was just the result of irresponsible actions by the creators. Supposedly, instead of sharing the wallet code to accept Ether, the URL with the code to make deposits was posted to the website.

While this is one belief, others have a different opinion. Some believe that there was no “hacking”. Rather, this was just a clever trick by the company to steal funds from their customers. Many have taken to Reddit, to claim that this mistake could have been avoided with basic security precautions that anyone should have considered in an ICO. We’ll admit this does sound a little bit hoax-y to us.

Coindash Hack Resolved

If you thought this was mysterious just wait. It was two months later that Ethereum’s price began to skyrocket. The connection? The same hacker that had taken these funds decided to return 30,000 Ethereum coins which at the time were worth $17 million. This was more than the original $7 million that had been taken. The kicker? To this day we don’t know who the hacker is or why they decided to be the good guy and return even more money to Ethereum. 

7. The Mystery of QuadrigaCX

The final mystery on our list is that of QuadrigaCX. This company happened to be the largest Bitcoin exchange in Canada and was shut down in January of 2019. So what, you might think? Companies are shut down all the time. This wasn’t an ordinary shut down. January 2019 was coincidentally also when the CEO, Gerald Cotten died while on his honeymoon in India. Without trust in any of his team at the exchange, he was believed to be the only one with access to over $190 million dollars worth of their customer’s cryptocurrency. 

However, when looking at the cold wallets that claimed this amount, it appeared that 5 out of 6 of them had already been drained of their funds. Even before Cotten’s “death”. A natural reaction to this fueled many skeptics questions to the legitimacy of his death. A death certificate was later obtained from India; however the funds were and continue to be nowhere to be found. Investigations continue and rewards have been offered. QuadrigaCX is still working with the Canadian government to repay their customers. 

Mismanaged From The Beginning

That said, Ernst & Young filed a 70-page report, claiming that Cotten had known exactly what he was doing. This assumption was made based on the appearance of fake Quadriga accounts that had been created back in 2016, long before his death. According to one article, the amounts transferred included 9,450 bitcoin, 387,738 ethereum, and 239,020 litecoin. These funds have since been believed to fund the CEO’s personal expenses, but may have initially been used since he had gotten in trouble with some investments.

This leads some to believe that Quaridga was mismanaged from the beginning. Poor practices such as a lack of administrative records and missing contingency plan for missing funds would only suggest this had been planned all along. The report went on to add:

“It appears that as and when operating expenses were required to be paid, or when Mr. Cotten desired funds to be transferred to himself or related parties, he simply instructed TPPs to issue payments with no oversight.”

While we can’t say for sure. This report suggests this mystery might just be about to be closed.

Solved Cryptocurrency Mysteries

Although not necessarily a mystery, we thought it might be good to end on a high note and play a little game of myth busters or better yet solved mysteries. With many people wondering if a powerful few hold all the power or if they should be investing in ICO’s with high return rates, we thought a couple of additional unveilings were in order.

Billions in Fundraising Really Is Too Good To Be True

A potentially legitimate investment opportunity, an initial coin offering essentially is a way for a startup cryptocurrency company to raise money from its future users: In exchange for sending active cryptocurrencies like bitcoin and ethereum, customers are promised a discount on the new crypto coins.

Okay, when we see market caps for new coins in the billions of dollars we can’t help but get just a little bit excited. But you might wonder, how do these coins collect so much investor money right off the bat? This is one mystery we actually may be able to mark as solved. These cryptocurrencies claim that they have high scalability. However, upon closer inspection, we might notice that scalability is actually a product of decentralization and therefore kind of useless. Platforms like EOS, NEO, Ripple, Stellar, Dash, and Tron all happen to be extremely centralized.

Since so many of these currencies are so centralized despite their claims, an individual without a background in computer science might struggle to detect the real from the fraud. 

Bitcoin is Controlled By Whales

These big bitcoin owners can also be known as whales. There are approximately 1000 of these big players in the ocean owning more than 42% of all bitcoins. If this isn’t scary enough, consider that this is a large part of the reason that the coin itself is so volatile. This is because each whale has the potential to significantly control the price of the coin itself. The price can be artificially inflated if a whale continues to create fake demand by placing a lot of buy orders to purchase the coin. This is often done in combination with playing on the natural booms and busts. This will allow them to take further advantage of these opportunities and further increase their wealth.

So yes, if you hear that the bitcoin ocean is filled with whales. You can count the mystery solved (and accurate).

There Is Nothing Bad To Say About Bitcoin

The third solved case we wanted to uncover was why there didn’t happen to be any negative things written in the bitcoin community. Unfortunately, the bitcoin community is very united in their viewpoints and as a result, they take negativism very seriously. Notoriously bad is the r/Bitcoin subreddit which continues to filter out any criticisms of their coin. Not only this but users that dare say anything bad will also be shunned, reported, and removed. Needless to say, we knew the surplus of positivity was concerning.

Others have begun to point out that crypto tribalism is prominent and coincidentally what is holding the blockchain community back.

Put Your Detective Hat On

We know, we know. The media tends to get out of hand and exaggerate some of the events that happen. Even in the crypto world. But that doesn’t mean it isn’t good to take a deeper look at some of these unsolved mysteries. After all, many of these events may give us some insights into which investments are good ones and how we perceive the crypto world as a whole. At the very least, with a little extra time on your hands, you might just be in the mood for a good mystery. This is perfectly okay too! 

If this is the case, we encourage you to pull your detective hat out and start researching. We never know. You might just be the next Sherlock Holmes and unlock some of the greatest cryptocurrency cases.

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