A massive bitcoin transaction caught the attention of the crypto community a few days ago. The fourth largest Bitcoin BTC, 2.51%, moved 69,369 BTC in a single transaction. At the time of the transaction, the total value of the BTC was $ 955 million.
The 1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbhx address was largely inactive after April 2013 when it received 69,471 BTC. After this massive transaction, management received small amounts of BTC sporadically. Until yesterday, the only major outlier for this pattern was a transaction in April 2015 when 101 BTC came out of the wallet.
Yesterday, the owner of the address first sent a test transaction of just over 1 BTC before initiating the 69,369 BTC transaction.
The management allegedly controlled BTC from the dark network and was also the target of hackers.
The 1HQ3 … address is particularly intriguing as it was both a target for hackers and has been linked to the now-defunct Silk Road Dark Web market.
An encrypted wallet file that allegedly contained the keys to move funds to the 1HQ3 address was sold on hacked web forums, according to a September Vice report. If someone were to break the file’s password, they could access nearly $ 1 billion worth of BTC. So it’s reasonable to assume that some people have at least tried. Yesterday’s transaction could be an indication that someone successfully cracked the password.
However, a more likely scenario is that the original owner of the wallet decided to move the money himself. According to CipherTrace, a blockchain analytics company, the most likely reason for the transaction was to switch between different Bitcoin address formats.
The address 1HQ3 … uses the old Bitcoin address format, which starts with the number 1. Funds have been moved to bc1qa5wkgaew2dkv56kfvj49j0av5nml45x9ek9hz6 which uses the more modern Bech32 address format.
According to CipherTrace, the BTC controlled by the address in question comes from the Darknet Silk Road market. Here’s how the company wrapped up its bulk transaction article:
While it is very likely that these transactions were made to keep up with the Bitcoin network, there is also speculation that hackers may have broken the wallet. These moves could potentially mean that the wallet owner is moving money to new addresses to prevent hackers from accessing the wallet.dat file, or that the hackers have already decrypted the file.
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