Nearly $ 1 billion from Silk Road Move for the first time since 2015
UPDATE: According to a complaint from the U.S. Department of Justice on Nov. 5, the over 69,000 BTC (and the BCH, BSV, and BTG equivalents) that were postponed earlier this week have actually been seized by the U.S. Department of Justice. The complaint adds that the person who moved the money (Individual X) was able to hack their way into Silk Road in 2013. Silk Road founder Ross Ulbricht was able to quickly identify Individual X’s online identity. Despite threats from the creator of the dark market, the funds were never returned and, to this day, they have largely remained unspent. The identity of Person X was likely already known to investigators from their initial investigation into the Silk Road. On November 3, 2020, Person X signed a Consent and Confiscation Agreement with the U.S. Attorney’s Office in the Northern District of California, forfeiting property to the United States government.
On November 3rd, for the first time since April 2015, more than 69,370 BTC moved out of the Silk Road – one of the first darknet markets – via the following two transactions:
The BTC address 1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbhx has transferred all of its credit over 2 separate transactions to the address bc1qa5wkgaew2dkv56kfvj49j0av5nml45x9ek9hz6. 1 BTC was sent on the first transaction while the remaining 69,369+ BTC were sent shortly afterwards. The first transaction was most likely sent as a test transaction to ensure that the BTC was not accidentally sent to an incorrect address. This action is usually observed when large amounts of cryptocurrencies are moved to new addresses.
It seems that this transaction was most likely done to switch between address formats. The old address is a Legacy / P2PKH address while the new address is a Bech32 / P2WPKH address. Old addresses – the original A bitcoin address is a cryptographic key that “owns” bit. More format – start with a ‘1’ while Bech32 addresses – the native Segregated Witness or SegWit, Segregated Witness, BIP141, w … more Address format – start with bc1q. Bech32 addresses are more efficient with Blocks contain stacks of valid transactions that have been hashed and … more Space that allows BTC blocks to store more transactions. In addition, Bech32 addresses are made up of numbers and only lowercase letters, so there is less chance of errors than previous address formats. About 5% of BTC is currently held in Bech32 addresses.
Since 1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbhx BTC before the Bitcoin is a digital currency (also called cryptocurrency) … more Cash and Bitcoin SV hard forks (among others) the address holder would also have access to the coins associated with the hard forks. Apparently at about the same time the entire BCH at this address was after qqrkjml7h3ymnc7ydd9m5r9s9hnqectmluwpxezd9a via TX 8e0d6a7f4a2fb523972febdb47845585aa94dbf3252b440e950378d. In addition, the entire BSV was moved via TX 5ff9c81c00bca688cc5c8713f3e38fd1f2a0a85a86de96f4afd096fdc1583fbc to 1F884r9J2WKbu8wekebqqRcu1Bw1jiRXba. Both addresses that BCH and BSV were sent to have not had any transactions to date.
While it is most likely that these transactions were made to stay up to date with the Bitcoin network, there is also speculation that the wallet may have been cracked by hackers. These movements could potentially mean that the wallet owner is moving funds to new addresses to prevent hackers from accessing the wallet.dat file, or that hackers have already cracked the file.
CipherTrace monitors the addresses for additional movement.