fbpx
Inform | Inspire | Initiate

1 billion dollar worth Bitcoin siezed from the notorious Silk Road founder Ross Ulbricht

Billion-dollar bitcoin theft took an unusual turn. Us Government seized cryptocurrency worth almost a billion. The chapter of Silk Road concludes.

0

Alon Gal, co-founder, and CTO of security firm Hudson Rock reported an unusually massive bitcoin wallet containing almost 69,369 BTC.

On the 4th of November, someone moved the entirety of the wallet’s content valuing over 1 billion dollars.

Tom Robinson, co-founder and chief scientist at the blockchain analysis firm Elliptic claimed that this was the world’s fourth-largest bitcoin account and the funds may have originated from the infamous underground market of Ross Ulbricht.

bitcoin
Ross Ulbricht, founder of Silk Road, an online black market and the first modern darknet market, best known as a platform for selling illegal drugs.

The mysterious entity behind the massive transaction turned out to be The US Department of Justice(DOJ).  After the end of the Silk Road in 2013 and Ulbricht behind bars, a gaping question of his criminal proceeds was unanswered. Silk Road generated an estimated revenue of 9.5 million in bitcoin and only commissions totalled more than 600k bitcoins.

Advertisements
Loading...

Ulbricht’s coffers remained out of reach and dormant for years until a hacker identified only as Individual X gained access and transferred the bitcoins. Investigations revealed that Ulbricht threatened this Hacker after discovering the theft and Individual X with limited options left, brokered a deal with the DOJ.

On Tuesday, the hacker signed a Consent and Agreement to Forfeiture with the US Attorney’s office in San Francisco agreeing to turn over the funds to the government. The formal Statement made by Individual X detailed the elaborate procedure financial movements associated with the Silk Road.

Silk Road used a so-called “tumbler” to process Bitcoin transactions in a manner designed to frustrate the tracking of individual transactions through the Blockchain. According to the Silk Road wiki web page‚ Silk Road’s tumbler “sends all payments through a complex‚ semi-random series of dummy transactions‚ . . . making it nearly impossible to link your payment with any coins leaving the site.”

In other words‚ if a buyer makes a payment on Silk Road, the tumbler obscures any link between the buyer’s Bitcoin address and the vendor’s Bitcoin address where the Bitcoins end up—making it fruitless to use the Blockchain to follow the money trail involved in the transaction‚ even if the buyer’s and vendor’s Bitcoin addresses are both known. The only function served by Silk Road’s implementation of such “tumblers” is to assist with the laundering of criminal proceeds.”

Advertisements
Loading...

Department of Justice recognized this event as the biggest seizure of cryptocurrency in its history.

Also read, Bitcoin Scam: Using Twitter Accounts Of Gates, Musk, Obama, Bezos And More, Hackers Conned Nearly Rs 89 Lakh Out Of The Users

Get real time updates directly on you device, subscribe now.

Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time
Loading...

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More