Crypto Tumbles As Mysterious $720 Million Bitcoin Wallet Wakes Up And Starts Dumping Coins
Cryptocurrencies are down hard once again since Friday's 'close' amid little to no news-based catalysts...
Some have argued, as first reported by CryptoCoinsNews (CCN), a crypto wallet containing $720 million worth of Bitcoin and an unknown owner have woken up after four years of hibernation, with more than $100 million moved to Bitfinex and Binance over the last several weeks, could have spooked investors.
The mysterious wallet contains a mindboggling 11,114 BTC, equivalent to around 0.52 percent of the total supply.
Redditor u/sick_silk noticed the sudden movement of these dormant coins in late August, through tracking each transaction in detail on the blockchain, accompanied with graphs representing the activity.
According to the Redditor, one of two sources could be the owner of this mysterious Bitcoin whale.
The first post was published on August 31 suggests that the funds may be linked to the now-defunct dark web market Silk Road, which was an online black market, best known as a platform for selling drugs, illegal weapons and pornography, malware, hacking services, and other black market goods.
u/Sick_Silk points out:
“It seems that the owner of a huge SilkRoad related wallet is moving funds actively since 3 days, dividing it in chunks of 100 coins by subwallets. The original wallet owned 111,114.62 BTC / BCH , which is currently valuated ~ $844M (without taking in account other Bitcoin forks). Last movements on these subwallets are 4 years and 5 months old (March 9th, 2014). The chunks have been divided over time to 60,000 coins then to 30,000 / 20,000 / 10,000 / 5,000 / 500 and now 100 coins.”
CCN said u/sick_silk connected the original crypto address to the Silk Road via the following bitcointalk thread in which user assortmentofsorts connects the dots to from an address operated by DPR (Dread Pirate Roberts AKA Ross Ulbricht, creator of the Silk Road) to the one in the Reddit post over the course of six traced transactions.
After more digging, u/sick_silk is more confident that the funds could belong to an old Mt Gox wallet. This theory is backed up by Bitcoin Security specialist WizSec, who tweeted: