How ZachXBT traced a $31M Bitcoin donation to a flagged wallet

Key Points

1. In June 2025, Ross Ulbricht, the pardoned founder of Silk Road, received 300 BTC ($31.4M) from unknown sources, prompting an investigation by ZachXBT.

2. ZachXBT used tools like Cielo, TRM Labs, and Arkham to trace the funds to two flagged addresses (1Mp5hH and 1CNDW) linked to exchange activity in 2014 and 2019.

3. Chainalysis confirmed the funds likely originated from AlphaBay, a darknet marketplace 10 times larger than Silk Road, suggesting a possible vendor source.

4. ZachXBT's investigation highlights the traceability of blockchain transactions despite obfuscation methods like mixing services.

5. Americans lost over $9B to crypto fraud in 2024, a 66% increase from 2023, with those over 60 losing $2.8B from 33,000 complaints.