The infamous Silk Road platform was shut down by the DOJ back in 2013, Silk Road darknet marketplace yet its shadow continues to loom over the cryptocurrency world, given that it was primarily powered by Bitcoin (BTC).
Earlier this week, speculations were rife when an enormous Bitcoin stash, valued at approximately $1 billion, was suddenly on the move.
The crypto community buzzed with theories about this mysterious movement, with many suspecting its connection to Silk Road. 1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbhx These theories gained traction until they were officially confirmed.
On Thursday, November 5th, clarity emerged as it was announced DOJ revealed that nearly 70,000 BTC had been secured from 'Individual X', a notorious Silk Road hacker from the early 2010s.
Finding Individual X
The DOJ’s recent filing reveals they closed in on the suspect using the expertise of Chainalysis, a top blockchain analytics firm.
Chainalysis provided insights into the Bitcoin transactions linked to Silk Road, pinpointing 54 unique transactions to particular addresses.
A peculiar pattern was noticed: several transfers happened at precisely 3:59 a.m., each involving exactly 2,500 BTC, which deviated from typical marketplace activity.
With this evidence, law enforcement deduced they were dealing with a hacker. The government had the tools and intelligence to track down the offender.
What Happened Next?
'Individual X', identified by the authorities, was found to be involved with the noteworthy '1HQ3' address.
Ross Ulbricht, the creator of Silk Road, reportedly realized the scope of this BTC theft back in 2013 and even attempted to coerce 'Individual X' into returning the funds.
Don’t Forget About the Forks
Years passed, yet the investigative trail was strong enough for U.S. officials to ultimately confront 'Individual X', who agreed to forfeit the bitcoins on November 3rd, 2020.
Consequently, the U.S. government soon took possession of this $1 billion Bitcoin cache.
Boon from Bullish BTC
When Individual X hacked nearly 70,000 BTC from the Silk Road, the holdings were worth roughly $350,000 at the time.
As Bitcoin enthusiasts are aware, the rise of Bitcoin forks such as Bitcoin Cash (BCH) means that the DOJ’s seizure wasn't restricted to BTC alone but also included these derivatives.
The plan for the U.S. government now is to liquidate these assets by hosting public auctions, dividing the holdings into substantial tranches for bidding.
