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In a surprising revelation, blockchain investigator ZachXBT disclosed a notable transfer of 4,800 Bitcoin (BTC), valued at $144 million, traced back to Abraxas, a now-defunct darknet marketplace that exit-scammed its investors in 2015.
The report indicates that the identified funds were routed through cryptocurrency mixers to conceal the transactions.
Millions in Abraxas Bitcoin Transferred
As stated in Zach’s tweet, an entity moved roughly 4,800 BTC ($144M) from the Abraxas darknet market, which executed an exit scam in November 2015 after ceasing operations. Abraxas, a prominent digital marketplace on the Tor network, was infamous for enabling illegal trade, including drugs, hacking services, and counterfeit goods.
Launched in December 2014, Abraxas met its end in November 2015, leading to a considerable loss of Bitcoin for its users. By March 2016, all BTC in the market’s wallets had been drained. Reports indicated that Abraxas misappropriated around 4,800 BTC, which was valued at approximately $1.85 million at that time, during the exit scam.
Despite the stolen cryptocurrency remaining inactive for several years, analysts have noted patterns of BTC movements linked to the platform.
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ZachXBT provided a diagram depicting the flow of funds from the original wallet, initially owned by Abraxas Market. The chart reveals that the movement from one of the addresses commenced on October 26, 2015.
One of the wallets implicated in the exit scam received about 49 BTC, and on May 3, 2023, the funds were sent to another address. The funds were then aggregated and routed through a Bitcoin mixer to obscure the transactions.
After the collapse of Abraxas, many of its darknet users reportedly transitioned to Alphabay, a platform that was seized in July 2017.
Darknet Markets Utilizing Crypto and Mixers
For years, darknet markets have employed cryptocurrency to facilitate transactions. Silk Road, recognized as the first modern darknet, operated from 2011 to 2013 and was well-known for utilizing crypto in its operations. Authorities have recovered billions worth of Bitcoin since its seizure in 2013.
The most recent platform linked to darknet activities is Hydra Marketplace, which functioned between 2020 and 2022.
Crypto mixers have been central to many criminal activities associated with digital assets. For example, U.S. authorities banned the crypto mixer Tornado Cash last year due to illegal operations, including money laundering.
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