As Bitcoin and cryptocurrency investors followed the US presidential election overnight, there was a big event in the market. Cryptocurrency bot Whale Alert announced that a Bitcoin (BTC) wallet, which has not been used since 2015, was launched during the night and $ 1 billion worth of transactions were made. We have compiled what is known about this huge Bitcoin transaction.
Whale Alert announced yesterday that 69,369 Bitcoins (BTC) have been transferred. The approximate value of the transferred Bitcoins is equivalent to $ 1 billion. According to the data transferred by CoinMarketCap, the address that made this transaction has been trading for the first time since 2015. The amount paid to miners for the transaction was only $ 12. Before the account sent 69 thousand 369 Bitcoins, it made another transaction of 1 BTC. This is thought to be done for testing purposes, to see if the recipient address is correct.
Is the address that makes a transaction of $ 1 billion familiar somewhere?
Zack Voell from CoinDesk made a statement that he knew the mailing address under the Whale Alert tweet. Referring to a Silk Road report shared by Vice in September, Voell said the shipping address matches the report.
Hackers have been trying to reach a Bitcoin wallet holding 69,670 BTC for over a year, Vice reports. Alon Gal, chief technology officer at Hudson Rock, announced that this address holding large amounts of BTC is “1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbhx” and said it was uploaded to the famous platform RaidForums for hacking.
The owner of this wallet, which has such a large amount of Bitcoin and has been used in many ways to be hacked, will be disturbed by all this and decided to transfer its $ 1 billion to another wallet. One section thinks this move was made out of fear of being hacked, while the other adds that there may be other reasons behind it.
Does your wallet have a relationship with Silk Road?
Elliptic suggested that $ 1 billion of Bitcoin processing could be attributed to Silk Road. Elliptic co-founder Tom Robinson said it is unclear whether 69,369 Bitcoins were sold by the authorities or by an individual seller. When Silk Road was closed by the US government in 2013, large amounts of Bitcoin were seized.
The USA has auctioned 174,000 Bitcoins from the wallets on the laptop computer of Silk Road founder Ross Ulbricht. But it is still known that 444 thousand Bitcoins in Silk Road are lost. Robinson said, “I am 60% sure that these funds are related to Silk Road,” and stated that he was not completely sure. People are wondering whether this 69 thousand 370 Bitcoins were from the 444 thousand BTC lost in the Silk Road case.
Why did he take action 5 years later?
Crypto money intelligence firm CipherTrace published a report on the issue. In the report, it was claimed that the address that carried out 69 thousand 370 Bitcoin transactions originated from an address linked to Silk Road. According to Ciphertrace, this address may have been made to adapt to the current version of the Bitcoin network.
This old address used the Legacy / P2PKH address format in the Bitcoin network. The new address to which the transaction is sent is in the Bech32 / P2WPKH format. Bech32 addresses both take up less space in the network and have less error margin due to their structure. Currently, only 5% of the total BTC supply is held at addresses in the Bech32 format.
This account, which was last exited in 2015, may want to stay up to date in order to gain access to BTC forks, Bitcoin Cash (BCH) and Bitcoin SV (BSV). In addition, CipherTrace did not rule out the possibility of escape from hacking attacks in its report.
What did Twitter say about the big deal?
While most Twitter users commented “the biggest transfer I’ve seen in a long time”, some were stuck with the payment of $ 12 for a $ 1 billion transaction. Twitter users have told all over the world how a huge revolution it is to make a $ 1 billion transaction for just $ 12 and that Bitcoin has brought this innovation to our lives.
Lark Davis, one of the well-known names of the crypto money world, also commented on the transfer.
“I don’t know about you, but I would check the recipient address 50 times before sending 1 billion BTC.”
Another Twitter user referred to the incident during the election marathon for the US presidency.
“Transfer is complete, now we know who is the winner of the election”