On-chain data reveals that hundreds of millions of dollars worth of Bitcoin (BTC) linked to a discontinued dark web marketplace has abruptly been moved to a crypto mixer.
According to blockchain detective ZachXBT, an entity has moved about 4800 BTC, worth $144 million, originating from the defunct Abaraxas darknet marketplace to a Bitcoin mixer.
“An entity moved ~4800 BTC ($144 million) originating from Abraxas darknet market which exit scammed in Nov 2015 after previously sitting dormant. They consolidated funds and also deposited [them] to a Bitcoin mixer. This graph shows an example of the movements from one of the addresses.”
Earlier this week, Financial Crimes Enforcement Network (FinCEN) released a new proposal for the US government to start keeping an eye on crypto tumblers.
Citing the USA Patriot Act, FinCEN proposes regulations that would have financial institutions monitor, keep records of, and report transactions that go through crypto or “convertible virtual currency” (CVC) mixers.
According to FinCEN, crypto tumblers – which aim to conceal the identity of users conducting crypto transactions by running their assets through a pool of other tokens from random origins – are still being used to commit crimes, such as money laundering, overseas.
“FinCEN assesses that transactions involving CVC mixing within or involving a jurisdiction outside the United States are of primary money laundering concern, and, having undertaken the necessary consultations, also finds that imposing additional recordkeeping and reporting requirements would assist in mitigating the risks posed by such transactions.
Such reporting will assist law enforcement with identifying the perpetrators behind illicit transactions and preventing, investigating, and prosecuting illegal activity, as well as rendering such transactions – through increased transparency – less attractive and useful to illicit actors.”
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