Chainalysis disclosed to WIRED on June 5 that the 300 Bitcoin (BTCUSD) donation to Ulbricht is believed to have originated from Alphabay. This market operated from 2014 to 2017, serving as a precursor to the Silk Road.

Director of investigations at Chainalysis, Phil Larratt, stated, “We have reasonable grounds to suspect that these funds originated in AlphaBay”. He speculated that the donation likely came from a major vendor on the platform with access to such significant amounts.

Further corroborating this claim, independent blockchain investigator ZachXBT confirmed that the 300 Bitcoin did not originate from Silk Road, and there were noticeable patterns in how the donor moved the funds. ZachXBT pointed out the use of multiple mixing services to blur the transaction trail and the cashing out of other cryptocurrencies in small increments to avoid detection. These factors suggest a possible criminal origin.

ZachXBT noted the donation seemingly came from a “dodgy centralized mixing service”, Jambler, while ordinary privacy enthusiasts typically use decentralized mixers, such as Wasabi and the now-defunct Samourai.

ZachXBT suggested to WIRED that although the money appears to be a “legitimate donation,” the funds themselves do not seem to be legitimate. The use of multiple mixers and CEX (centralized exchange) deposits spread out is a typical strategy for avoiding seizure of illicit funds.

Chainalysis was pivotal in identifying Bitcoin addresses linked to AlphaBay, significantly contributing to the 2016-2017 “Operation Bayonet” investigation, which led to the darknet marketplace’s takedown. If the Bitcoins donated to Ulbricht had been held since then, they could have appreciated over 40 times their original value. The identity and motivations of the donor, however, remain undisclosed.

In January, US President Donald Trump pardoned Ross Ulbricht, who had been serving a double life sentence plus 40 years for his role in creating and operating Silk Road.

The post Silk Road Founder Receives $31 Million Bitcoin Donation from Alleged Alphabay Wallet: Investigation Reveals appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Earlier this year, Ulbricht was pardoned by the former President, Donald Trump. The collection of items for auction, which were conducted through the Bitcoin-exclusive marketplace Scarce City, spanned from his personal possessions prior to his 2013 apprehension, to memorabilia from his prison tenure.

The assortment of items included a backpack, sleeping bag, and drum from his pre-arrest days. Memorabilia from his time in prison encompassed a lock, notebook, clothing, and a number of artworks he created while behind bars.

Ulbricht expressed his sentiments on the auction page, stating, “I’ve left Arizona, the state where I was imprisoned. It’s time to travel. This necessitates downsizing and moving on. I don’t need the reminders and I’m sure some of you will appreciate owning them.”

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