According to blockchain data analyst Zachxbt, a sum of 4,800 bitcoins, originally associated with the defunct darknet marketplace known as Abraxas, has been shifted to a Bitcoin mixing service. Abraxas ceased its operations via an exit scam in November 2015 after operating for less than a year, and the bitcoins had been lying dormant since that time.
Sudden Transfer of $144M in Bitcoin from 2015 Abraxas Incident to Mixing Service
On social media platform X (previously known as Twitter), Zachxbt announced that 4,800 bitcoins—currently valued at $144 million—originating from a wallet linked to Abraxas were transferred to a cryptocurrency mixing service.
“An organization or individual has transferred approximately 4,800 BTC, worth around $144 million, from the Abraxas darknet marketplace that terminated its operations in an exit scam in November 2015. The bitcoins were dormant until this point,” Zachxbt stated on Monday. “The funds were consolidated and then funneled into a Bitcoin mixing service,” the analyst elaborated.
Historical Context of Abraxas’ Bitcoins
When Abraxas conned its users and vendors, the value of Bitcoin stood at $386 per unit on the day the marketplace went offline. This indicates that the stolen bitcoins were worth an estimated $1.85 million at that juncture.
Abraxas initiated its operations in close temporal proximity to other infamous darknet markets like Alphabay and Agora, with its launch on December 13, 2014. According to data from gwern.net, the platform became unavailable on November 5, 2015, and the associated Bitcoin wallets were emptied in March 2016.
Aftermath of the Abraxas Scandal
In the wake of Abraxas’ shutdown, vendors and users scurried to find alternative darknet marketplaces. Unfortunately, several new platforms also engaged in fraudulent activities against their users. Studies show that around the same period, Agora also ceased its operations, resulting in both Abraxas and Agora users migrating to Alphabay.
Subsequently, Alphabay emerged as the leading darknet marketplace until its seizure by law enforcement agencies in July 2017. The rationale behind the recent transfer of the long-dormant Abraxas Bitcoin holdings remains undisclosed, except that the current valuation of the funds has escalated by $142 million compared to their worth in 2015.
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Frequently Asked Questions (FAQs) about Abraxas Bitcoin Movement
What is the main event discussed in the article?
The main event discussed in the article is the sudden transfer of 4,800 bitcoins from a wallet linked to the defunct Abraxas darknet marketplace to a Bitcoin mixing service. These bitcoins had remained dormant since Abraxas ceased operations in an exit scam in 2015.
Who reported the movement of the bitcoins?
The movement of the bitcoins was reported by a blockchain data analyst named Zachxbt on a social media platform referred to as X, formerly known as Twitter.
What is the current valuation of the transferred bitcoins?
The 4,800 bitcoins that were transferred are currently valued at approximately $144 million.
How much were the bitcoins worth at the time of Abraxas’ exit scam?
At the time of the exit scam in 2015, Bitcoin was trading at $386 per unit. The 4,800 bitcoins were then worth about $1.85 million.
What happened to other darknet marketplaces after Abraxas’ exit scam?
After the exit scam by Abraxas, users and vendors started migrating to other darknet marketplaces. Several of these alternative platforms also turned out to be fraudulent. Agora, another darknet marketplace, also shut down around the same time, leading its users, along with Abraxas users, to migrate to Alphabay. Alphabay eventually became the leading darknet marketplace until it was seized by law enforcement in July 2017.
The recent movement is significant because the bitcoins had remained untouched for several years and are now valued $142 million more than they were in 2015. The reason behind this sudden transfer remains undisclosed.
What is a Bitcoin mixing service?
A Bitcoin mixing service is a type of service that mixes potentially identifiable or ‘tainted’ cryptocurrency funds with others, to obscure the trail back to the original source, making it more difficult to trace the movement of funds.
More about Abraxas Bitcoin Movement
- Zachxbt’s Social Media Report
- History of Darknet Marketplaces
- Abraxas Exit Scam Details
- Bitcoin Mixing Services Explained
- Timeline of Alphabay’s Rise and Fall
- Data on Bitcoin Valuation Over Time
- Information on Agora Darknet Marketplace