$540 Million Worth of ‘Sleeping Bitcoins’ From 2014 Move — BTC Possibly Linked to Cryptsy Theft

On March 29, blockchain parsers caught a series of 11 transactions totaling 11,325 bitcoin moving from chartless wallets created successful 2014, to a large fig of recipient addresses. Furthermore, the stash of bitcoin worthy $540 cardinal contiguous is perchance linked to the Cryptsy theft, according to onchain analytics.

11,325 Bitcoins Move From Dormant 2014 Addresses, Assets May Be Linked to Cryptsy Theft

A full batch of bitcoin stemming from wallets created successful 2014 moved connected Tuesday and the funds whitethorn beryllium tied to the Cryptsy theft. The now-defunct cryptocurrency speech led by Paul Vernon mislaid millions of dollars worthy of integer assets years agone astatine the extremity of 2015.

More precocious astatine the extremity of January 2022, the U.S. Department of Justice (DOJ) announced it had indicted Vernon for allegedly stealing implicit $1 cardinal from integer currency wallets. The DOJ said Vernon, different known arsenic ‘Big Vern,’ stole from accounts betwixt May 2013 and May 2015 and proceeded to deposit the stolen funds into his ain slope account.

Paul Vernon being interviewed by the Miami New Times successful 2016 earlier helium disappeared.

The funds that moved connected March 29, 2022, deduce from BTC wallets that were created connected July 29, 2014. All 11,325 bitcoin were processed astatine artifact tallness 729,587, and the enactment was caught by Btcparser.com, and Whale Alert. “The monolithic magnitude of activated dormant [bitcoin] successful the erstwhile posts are perchance linked to the Cryptsy hack/theft,” Whale Alert tweeted connected Tuesday. Onchain investigation further shows the 11,325 bitcoin whitethorn person originated from Cryptsy, according to clustering from oxt.me data arsenic well.

Fed Seizure Speculation Rises, ‘Big Vern’s’ Whereabouts Are Still Unknown

The stash of bitcoin sat idle for much than 7 years, and immoderate radical suspect the crypto whitethorn beryllium successful the hands of the U.S. government. The speculation derives from the caller Bitfinex hack coins that moved this year, coupled with the coincidental and caller DOJ indictment of ‘Big Vern.’ However, dissimilar the Bitfinex hack coins that consolidated into a azygous address, the transfers processed astatine artifact tallness 729,587 were sent to a wide scope of addresses.

Bitcoin code 1LwZYCt8dDhZDMd6uXGMwVsmWPXW9eX9Ww shown supra is 1 of the addresses from the 11,325 bitcoin stash moved connected March 29, 2022.

For instance, this account sent 1,000 BTC to 59 antithetic recipients. This address sent 1,325 BTC to 78 recipient addresses connected Tuesday day astir 6:30 p.m. (UTC). At the clip of transfer, the 11,325 bitcoin was worthy $540 cardinal utilizing today’s BTC speech rates. Even though the DOJ indicted Vernon, the erstwhile Cryptsy CEO is inactive connected the tally and nary 1 knows wherever helium is located.

In 2016, the Miami New Times ran an investigative report that said Vernon and his woman dipped disconnected to China. That was according to Vernon’s woman astatine the time, and pursuing that report, Vernon allegedly spoke with the Miami New Times successful an exclusive interview. According to ‘Big Vern’ earlier the alleged interview, 13,000 bitcoin was stolen from the exchange. The speech besides said it mislaid 300,000 litecoin (LTC) arsenic well.

“We unopen down the website and record bankruptcy, letting users record claims via the bankruptcy process and letting the tribunal marque the disbursements,” Cryptsy’s announcement said astatine the time. “Or, idiosyncratic other comes successful to acquisition and tally Cryptsy portion besides making bully connected requested withdrawals.”

None of the aforementioned promises came to fruition and the 11,325 bitcoin that moved connected Tuesday day whitethorn beryllium linked to the 13,000 BTC stolen from Cryptsy customers.

What bash you deliberation astir the 11,325 bitcoin that perchance is linked to the Cryptsy speech theft? Let america cognize what you deliberation astir this taxable successful the comments conception below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Miami New Times 2016,

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