Almost $1 billion of Bitcoin reputedly linked to the now-shuttered dark web marketplace Silk Road was moved while the world was focused on the US presidential race.
Nearly 70,000 Bitcoins were moved on Tuesday from a wallet associated with the notorious secret trading floor of drug dealers and gun runners dubbed an amoral eBay, according to the blockchain analysis firm Elliptic.
Libertarian activist Ross William Ulbricht – also known as Dread Pirate Roberts - operated the Silk Road from January 2011 until it was shut down in an FBI sting two years later. He is serving life in prison in the US.
Silk Road – named after the historic trade route that spanned Europe and Asia - used the world's biggest cryptocurrency to generate the equivalent of $1.2 billion in illicit sales and reap $80 million in commissions in less than three years. It had just under one million registered users.
They were able to browse anonymously through nearly 13,000 listings under categories such as “Cannabis,” “Psychedelics” and “Stimulants” before making purchases using Bitcoin. The site also sold hacking codes, weapons and stolen financial information.
Tom Robinson, co-founder of Elliptic, said he was 60 per cent sure that the account was connected to Silk Road. The wallet is the world’s fourth-richest Bitcoin address, according to BitInfoCharts.
Mr Robinson said it was unclear whether the funds were moved by someone connected to Ulbricht, law enforcement or a drug vendor linked to the site. It is the first time the funds have moved since 2015.
The Bitcoins were moved from the wallet on US polling day after reports that hackers had been passing details of the account for more than a year to try to steal its contents.
“If you were going to start laundering $1 billion in Bitcoin from the Silk Road without attracting too much attention, last night was the time to do it,” said Mr Robinson in a tweet on Wednesday. “We’ll be making sure it does get a lot of attention.”
Bitcoin's price rose to more than $14,900 on Thursday, its highest level since January 2018, amid volatility caused by the US election. It has surged more than ten per cent since Tuesday.
"Bitcoin is the big winner from the current macro environment," said Anthony Pompliano, a co-founder and partner at cryptocurrency investment firm Morgan Creek Digital Assets.
