According to Cointelegraph, a crypto wallet associated with the now-defunct dark web marketplace Alphabay has been identified as the source of a $31 million Bitcoin donation to Ross Ulbricht, the creator of Silk Road. Blockchain analytics firm Chainalysis revealed that the 300 Bitcoin (BTC) donated to Ulbricht earlier this month were traced back to Alphabay, which operated from 2014 to 2017 as a predecessor to Silk Road. Chainalysis suggested that the funds likely originated from a major vendor on the platform who had access to such substantial amounts.
Phil Larratt, Chainalysis director of investigations, stated, "We have reasonable grounds to suspect that these funds originated in AlphaBay." He added that the amount suggests it came from someone who was possibly a vendor on AlphaBay during its early days. Independent blockchain investigator ZachXBT confirmed that the 300 Bitcoin did not originate from Silk Road and noted suspicious patterns in the donor's fund movements. The donor reportedly used multiple mixing services to obscure the transaction trail and cashed out other cryptocurrencies in small amounts to avoid detection, indicating potential criminal origins.
ZachXBT commented on X that the donation appears to have come from a "sketchy centralized mixing service" called Jambler, contrasting with normal privacy enthusiasts who use decentralized mixers like Wasabi and the now-defunct Samourai. He further suggested that the donation was a "legitimate donation, but not legitimate funds," explaining that the use of multiple mixers and spreading out centralized exchange deposits are typical methods to prevent illicit funds from being frozen.
Chainalysis played a crucial role in identifying Bitcoin addresses linked to AlphaBay, contributing significantly to the takedown of the darknet marketplace during "Operation Bayonet," an investigation that spanned 2016 and 2017. Any Bitcoin held since then would have appreciated dramatically, potentially over 40-fold, yet the identity of the donor and their motivation remain unknown. In January, U.S. President Donald Trump fully pardoned Ross Ulbricht, who had been imprisoned for 12 years, serving a double life sentence plus 40 years for his role in running Silk Road.
