A few days ago, a very large bitcoin whale alarm was making the rounds. Almost 70,000 BTC, the equivalent of just over 1 billion US dollars, were moved out of the fourth largest Bitcoin Formula scam. This was the first transaction since April 2015. Now it was revealed who is actually behind the transaction and what the background is.
Bitcoin Whale: U.S. Justice Department
Last Thursday, the world-famous Bloomberg portal reported the seizure of a gigantic amount of Bitcoin by the US Department of Justice. Accordingly, the enormous sum of 1,000,000,000 USD was confiscated, which came from the activities of the now closed darknet market called Silk Road.
The US Department of Justice said:
The amount seized is by far the largest sum of cryptocurrencies that has ever been seized in the history of the ministry.
According to the investigators, there was a collaboration with the company Chainalysis, known in the cryptospace. The aim of the collaboration was to identify Bitcoin transactions that were directly related to Silk Road. Obviously, this cooperation was successful and 54 transactions were discovered that were generated by an illegal activity.
0.33% of all available BTC in the hands of the Ministry
The Ministry of Justice said:
The flow of money was traced back to a Bitcoin address. Further investigation of this address by the US Attorney’s Office and other investigators revealed that the funds were related to Silk Road. Subsequently, on November 3, 2020, law enforcement authorities seized several thousand Bitcoin, which on November 4 had an equivalent value of over 1 billion dollars.
In addition to this enormous amount of Bitcoin, holdings of Bitcoin Cash, Bitcoin Gold and Bitcoin SV were also confiscated. And so the US Attorney David Anderson ended the statements with:
The successful arrest of the Silk Road founder in 2015 left the question of where the money was going. Well we have the answer. $ 1 billion of criminal activity is now in the hands of the United States.
This solves the mystery of the mighty Bitcoin Whale. It is also interesting that the US government is increasingly becoming a BTC whale. With almost 70,000 BTC now seized, the US Department of Justice alone holds 0.33% of the available supply of Bitcoin.