Once again in the world of cryptocurrency, we have a mystery in our hands.
A $ 720 million dormant giant woke up after four years, with $ 100 million transferred to Bitfinex and Binance over ten days at the end of August. The bitcoin portfolio contains 111,114 BTC or 0.52% of the total supply. The sudden movement of these dormant funds could have a disruptive potential in market price action, particularly if the funds belong to one of the two possible candidates proposed by Reddit sleuth u / sick_silk.
The Redditor brought the movement of funds to the attention of the Crypto community by publishing a series of postings of each transaction in detail accompanied by graphs representing the activity.
The first post was presented on August 31 and suggested that the funds could be connected to the now-defunct darkness of the Silk Road web market that managed the smuggled goods trade as recreational and prescription drugs, illegal weapons and pornography, malware, piracy services, guides to various types of criminal activities and other black market goods and services.  u / Sick_Silk emphasizes:
"It seems that the owner of a huge SilkRoad wallet has been actively transferring funds for 3 days, dividing it into ch k of 100 coins per subwallet.
The original portfolio held 111,114, 62 BTC / BCH which is currently valued ~ $ 844M (without taking into account other #Bitcoin forks).
Last movements on these subwallets are 4 years and 5 months (March 9, 2014).
pieces were divided over time to 60,000 coins and then to 30,000 / 20,000 / 10,000 / 5,000 / 500 and now 100 coins. "
Sick_Silk connected the original Silk Road address through the following bitcointalk thread where the 39; assortment of users links points from an address managed by DPR (Dread Pirate Roberts, AK Ross Ulbricht, creator of the Silk Road) to that in the post Reddit over the course of six transactions traced.
Silk Road vs. Mt Gox
However, while the evidence linking the funds to DPR is intriguing, u / Sick_Silk had his doubts and after another week of investigations he postulated the theory that funds could to be from an old Mount Gox w allet, a view mirrored by Bitcoin WizSec security specialists.
They guessed right later in the post; is an old MtGox whale, unrelated to Silk Road.
– WizSec (@wizsecurity) 4 September 2018
u / Sick_Silk created custom graphs to represent the movement of funds, with red nodes indicating the most recent transactions (<1 month), nodes blue indicate the recent ones (<1 year) and green nodes indicating the older ones ( > 1 year
The following chart represents $ 100 million moved to Binance and Bitfinex, with more charts and information available in the post-Reddit insight.
 Why is it so important?
Besides being an intriguing mystery, this has ramifications in the real world.S S_Sick_Silk believes that the movement of funds may be at least partly responsible for the recent fall in prices seen in August, and Whether it is true or not, it is certainly the case that 0.52% of the entire Bitcoin supply is more than enough to seriously manipulate or destabilize the market, in effect, the funds already have a value of about $ 80 million less from when the relationship has become public.
u / Sick_Silk has yet to respond to requests for comment at the time of writing, but we look forward to the next update by our Reddit investigators and other community experts who can tell us more about the recent resurrection of one of the largest sums of Bitcoin of individual ownership in the world.
Image highlighted by Shutterstock.
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