According to Eagle-Eyed On-Chain Analysts, Authorities May Have Gained Access to Money Linked to the Crypsy Theft
according to this whale alertA Twitter bot that tracks large transactions has made a total of 11,325 inactive bitcoins active after 7.7 years.
The entire sum is divided into smaller fractions and distributed to 689 different addresses.
Whale Alert states that large amounts of reactivated bitcoin could be linked to the Crypse theft.
In 2016, the now-defunct exchange announced that it had gone bankrupt due to a hack that allegedly occurred in July 2014. Earlier, Krypsy customers collectively faced delays in withdrawals.
Cryptsy CEO and founder Paul Vernon was then slapped with a class-action lawsuit by disgruntled customers who accused the Boynton Beach businessman of absconding with millions of dollars worth of cryptocurrency. In September 2017, a federal judge in Florida ruled that Crypsy had indeed lost 11,325 bitcoins, but the court failed to identify the thief.
Vernon reportedly liquidated Cryptis’ accounts in 2015 and set aside his ill-gotten wealth on a luxurious mansion, a diamond ring and an expensive car.This January, Vernon was charged by the US Department of Justice with wire fraud, money laundering and tax evasion. He allegedly stole more than $1 million from the wallet of the exchange and then transferred the money to his bank account. After moving to China in 2016, Vernon himself hacked into the exchange, stole its database containing customer funds, and then got rid of it to hide the theft.
Some Twitter users are speculating that US authorities have managed to collect and recover the stolen funds as the numbers continue to rise. This explains a series of back-to-back transfers that took place on Tuesday.