$540 Million Worth of 'Sleeping Bitcoins' From 2014 Move — BTC Possibly Linked to Cryptsy Theft

$540 Million Worth of ‘Sleeper Bitcoin’ from 2014 Move – BTC Potentially Linked to Crypto Theft – Bitcoin News

On March 29, blockchain analysts discovered a chain of 11 transactions totaling 11,325 bitcoins transmitted from unknown wallets created in 2014, to a large number of recipient addresses. Furthermore, a $540 million bitcoin stockpile today is likely linked to the Cryptsy theft, according to onchain analytics.

11,325 Bitcoin Moved From Dormant 2014 Addresses, Assets May Be Linked to Crypto Theft

A large batch of bitcoin originating from wallets created in 2014 was moved on Tuesday and the funds may be linked to the Cryptsy theft. The now-defunct cryptocurrency exchange led by Paul Vernon lost millions of dollars in digital assets years ago at the end of 2015.

Recently at the end of January 2022, the US Department of Justice (DOJ) announced that it had indicted Vernon for allegedly stealing more than $1 million from crypto wallets. The Justice Department said Vernon, also known as “Big Fern,” stole from accounts between May 2013 and May 2015 and proceeded to deposit the stolen money into his private bank account.

$540M Worth of 'Sleeping Bitcoin' from 2014 Move - BTC Possibly Linked to Cryptsy Theft
He gives an interview to Paul Vernon in the Miami New Times before his disappearance.

Funds transferred on March 29, 2022, drawn from BTC wallets created on July 29, 2014. All 11,325 bitcoins processed at block height 729,587, the action detected by Btcparser.com, and whale alert. “The massive amount of sleeping activator [bitcoin] In previous posts possibly related to Cryptsy hack/theft, “Whale Alert chirp Tuesday. Onchain analysis also shows that 11,325 bitcoins may have originated from Cryptsy, according to compilation from oxt.me data as well.

Speculation of Fed forfeiture rises, whereabouts of ‘Big Fern’ remain unknown

Bitcoin stock has been idle for more than seven years, and some people suspect The encryption may be in the hands of the US government. This speculation stems from the recent hack of Bitfinex coins transferred this year, along with the recent indictment by the Department of Justice of “Big Vern.” However, unlike Bitfinex hack coins that were consolidated into a single address, transfers processed at block height of 729,587 were sent to a wide variety of addresses.

$540M Worth of 'Sleeping Bitcoin' from 2014 Move - BTC Possibly Linked to Cryptsy Theft
The Bitcoin address 1LwZYCt8dDhZDMd6uXGMwVsmWPXW9eX9Ww shown above is one of the addresses from 11,325 bitcoin stash transferred on March 29, 2022.

For example, this account sent 1,000 BTC to 59 different recipients. This address sent 1,325 BTC to 78 receiving addresses on Tuesday afternoon around 6:30 PM (UTC). At the time of the conversion, 11,325 bitcoins were worth $540 million using current BTC exchange rates. Although Vernon has been indicted by the Department of Justice, the former Cryptsy CEO is still on the run and no one knows his whereabouts.

In 2016, the Miami New Times published an investigative report that said Vernon and his girlfriend had dived into China. That was according to Vernon’s wife at the time, after which the report, Vernon allegedly spoke with the Miami New Times in an exclusive interview. According to ‘Big Vern’ prior to the alleged interview, 13,000 bitcoins were stolen from the exchange. The exchange also said that it lost 300,000 Litecoins (LTC) as well.

“We have closed the site and declared bankruptcy, allowed users to file claims through the bankruptcy process and allowed the court to make payments,” Cryptsy’s announcement said at the time. “Or, someone else comes along to buy and run Cryptsy while also making the required withdrawals.”

None of the aforementioned promises have come to fruition, and the 11,325 bitcoins transferred on Tuesday afternoon may be linked to 13,000 BTC stolen from Cryptsy customers.

Tags in this story

$540 million, 11,325 bitcoins, 2014, 300,000 litecoins, Big Vern, bitcoin crypto, bitcoin movement, bitcoin hacks, cryptocurrency, bitcoin cryptocurrency, cryptocurrency, CEO, dormant address, idle bitcoin, miami new times, paul vernon, bitcoin sleeping Vernon, Vernon’s wife

What do you think of the 11,325 Bitcoins that are likely to be linked to Cryptsy exchange theft? Tell us what you think about it in the comments section below.

Jimmy Redman

Jamie Redman is the head of news at Bitcoin.com News and a technology financial journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

photo credits: Shutterstock, Pixabay, Wiki Commons, Miami New Times 2016,

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