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Silk Road Responsible For $1 Billion in BTC Movement

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Photo by Aleksi Räisä on Unsplash

The world of Crypto shook recently by the massive movement of $1 Billion worth of Bitcoins. Silk Road may have been responsible for this movement. Silk Road was a website on the Dark Web, which sold illicit drugs and credit cards. For that reason, Silk Road and the BTC have had a strong connection for a long time. In October 2013, the website shut down.

An IP address linked with the Silk Road transferred 69,369 Bitcoins on November 4, 2020. At the time of transfer, the value of one bitcoin was $15,599.92. The total came out to be exactly $1,082,150,850.    

This was the first movement after 5 years from the address believed to be of the Silk Road. In 2015, this address used to transfer 101 BTC to BTC-e. The US Government banned BTC-e, a Cryptocurrency trading platform, on July 28, 2017. 

Tom Robinson highlighted the role of SIlk Road in this transfer, co-founder of Elliptic. He also claimed that an encrypted file containing cryptographic keys is circulating on hacker forums.

Silk Road’s Connection With Bitcoin

Silk Road was the most popular website on the Dark Web for selling illegal drugs. From Psychedelics to Steroids, thousands of illegal drugs were available on the website. Ross Ulbricht was the founder and operator of Silk Road. He believed in libertarian ideals and wanted everyone to have free will to buy or sell whatever they wanted. Dread Pirate Roberts was Ross Ulbricht’s pseudonym during his active years.

Silk Road relaunched a month after the original Silk Road shut down. The name given to the relaunched website was Silk Road 2.0. In February 2014, Silk Road 2.0 also shut down.

Tracking payments using Bitcoin is difficult. Combining it with Tor and it becomes almost impossible to track the buyers. When the Silk Road’s server data leaked from the website’s CAPTCHA, the government identified the IP Address of the Silk Road.

Silk Road earned around 614,000 BTC through commissions. The government seized 174,000 BTC after Ross Ulbricht’s arrest in 2013. The value of the remaining BTC is around $14.7 Billion at this time. Not only were all the Bitcoins seized at the time of Ross Ulbricht’s arrest, but they were also seized when the recent transfer of Bitcoin from Silk Road’s address occurred

The previously seized Bitcoins were auctioned by the US Marshals Service on June 27, 2014. 29,657 BTC, which was valued at $18 Million at that time, were sold in 10 blocks in an online auction.

The recent movement in Bitcoin indicates that the Silk Road still has a lot of BTC left, which they earned through commissions when their website’s traffic was at an all-time high. So, it is clear that Silk Road and the BTC indeed have had a strong connection. It is anyone’s guess as to what the actual number of Bitcoins they earned at that time. 

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