22.1 C
New York

Feds Missed ‘Millions’ When Seizing $1 Billion in Silk Road Bitcoin

Date:

Feds Missed ‘Millions’ When Seizing $1 Billion in Silk Road Bitcoin Blockchain, Featured, Home CoinGenius Hosts Virtual Crypto Event The Road To Mass Adoption

In brief

  • A blockchain investigation firm claims that the DOJ missed millions of dollars in crypto when it seized $1 billion in Bitcoin from a hacker.
  • Those funds have been linked to the Silk Road, a defunct darkweb marketplace.
  • The unretrieved funds are all obscure Bitcoin forks.

Blockchain analytics company Coinfirm has found millions of dollars worth of cryptocurrency missed by the US Department of Justice when it seized about $1 billion of Bitcoin from someone it thinks hacked the defunct dark web marketplace The Silk Road. 

In a blog post on Friday, Coinfirm said that it has found “millions of dollars in assets” that belong to “Individual X,” the pseudonym that the DOJ awarded the hacker when it announced the seizure of the $1 billion in Bitcoin on November 5. 

Among unretrieved funds are 693,701 “Bitcoin Diamonds”, worth approximately $310,000; 69,370 “Super Bitcoin”, worth around $66,000; and 69,370 “Bitcoin Private” coins, worth roughly $11,000. Coinfirm did not disclose the full extent of the unretrieved funds and did not immediately respond to a request for additional details.

Coinfirm believes that “Whoever has access to the private keys of the main wallet, would still have access to these funds,” meaning that the hacker still got something for their effort.

Blockchain investigation firms traced the origin of the hack to a wallet address that had been circulating around forums for about a year, believed to be related to the Silk Road, the online black market that the FBI shut down in 2013.

The DOJ, did, however, retrieve less obscure forks of Bitcoin, such as Bitcoin SV and Bitcoin Cash

The Silk Road was an online darkweb marketplace, accessible through the Tor browser and powered by Bitcoin. It sold drugs, fake driver’s licenses and credit card details, among other illegal goods and services. The FBI shut it down in 2013.

Its founder, Ross Ulbricht, is serving a life sentence without parole in an Arizona prison. He occasionally posts analysis about the Bitcoin market from his cell. 

Related articles

spot_img

Recent articles

spot_img