How is bitcoin linked to the main owner?

BitcoinTurk

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Quote from: Baghdad on January 30, 2024, 08:55:52 AM

Read this fascinating story of a young bitcoin fellow named Jimmy who stole from silk road. The site happened to have a glitch and Jimmy withdrew 50,000 btc. The owner of silk road contacted him when it appeared to him, that 50k btc disappeared from his wallet due to the glitch, but Jimmy afforded him no help. Later, Jimmy transferred $800 to a KYC enabled exchange, and the cops were able to link it back to the stolen 50,000btc from silk road. How possible is this?

Blockchain network is actually a technology that attaches great importance to privacy and contributes to transfers with user privacy but unfortunately since it is regulated in some way today it has become very difficult to make completely anonymous transfers. In this case, Jimmy submitted his identity and therefore his personal information to a centralized exchange service and after tracking the cryptocurrency wallet address to which he made the transfer, the person disclosed his identity. Although blockchain technology is privacy-oriented, unfortunately, when a centralized institution learns who owns the wallet address it is very easy to disclose that person.

The main mistake here arises from the fact that Jimmy carries out transfers and transactions through a centralized exchange where he provides his credentials. At this point, the person has disclosed his own identity and personality due to the involvement of a centralized financial institution.

MusaMohamed

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Quote from: Baghdad on January 30, 2024, 08:55:52 AM

Read this fascinating story of a young bitcoin fellow named Jimmy who stole from silk road. The site happened to have a glitch and Jimmy withdrew 50,000 btc. The owner of silk road contacted him when it appeared to him, that 50k btc disappeared from his wallet due to the glitch, but Jimmy afforded him no help. Later, Jimmy transferred $800 to a KYC enabled exchange, and the cops were able to link it back to the stolen 50,000btc from silk road. How possible is this?

Bitcoin has a public ledger and transactions on Bitcoin blockchain can be traced with Bitcoin block explorers.

List of useful Bitcoin block explorers.

Jimmy did not touch those bitcoin for a long time but after all, he felt safely to touch them after some years and made mistakes. He did not know that government watched those addresses very closely to catch him.

More information about this case from DOJ's press release.
U.S. Attorney Announces Historic $3.36 Billion Cryptocurrency Seizure And Conviction In Connection With Silk Road Dark Web Fraud

Mate2237

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Quote from: Baghdad on January 30, 2024, 08:55:52 AM

Read this fascinating story of a young bitcoin fellow named Jimmy who stole from silk road. The site happened to have a glitch and Jimmy withdrew 50,000 btc. The owner of silk road contacted him when it appeared to him, that 50k btc disappeared from his wallet due to the glitch, but Jimmy afforded him no help. Later, Jimmy transferred $800 to a KYC enabled exchange, and the cops were able to link it back to the stolen 50,000btc from silk road. How possible is this?

It is possible because the movement of the bitcoin was traced from the stolen $50,000 bitcoin and any unit of bitcoin that leave the wallet nor the address was tracked down so whenever location the coins are transfered would be seen but the only different will be the owner of the address will not be known but since the person who stolen the wallet was know and the bitcoin was moved from the hodling wallet to a destination wallet the the person that compromised the wallet must held responsible.

famososMuertos

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Quote from: Baghdad on January 30, 2024, 09:38:02 AM

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Envisioning the digital tech deeply the thoughts of privacy have died away for wants to track criminals. The privacy never stayed, staring at the responses above me. Not Trying to complicate the thread, was there ever a certain day where the network was private and people staying truly anonymous and untracked?

Read what you wrote carefully, the bitcoin network is anonymous, the security of your data is your responsibility, I think that the misuse (or, depending on the case, because wanting to hide information due to theft, kidnapping, is not good) of the network lies in people who do not understand what the technology they use offers, and then they misuse it, and it is the fault of third parties.

dezoel

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There is no rocket science in this, Bitcoin transactions are available in the public ledger and are traceable through the blockchain, and if you have an account at a KYC-enabled centralized exchange and you send some Bitcoin from your wallet to it, even if you change addresses, the chain of transactions will allow anyone to reach your wallet address and check how many Bitcoins you have in your wallet. That is probably how he was traced by the FEDs.

He probably wasn't smart enough or didn't think it through, otherwise, he could find a way around it and never get caught like that. They wouldn't be able to find him even if they had found the wallet containing the Bitcoin because your Bitcoin wallet doesn't have an IP address attached to it or anything that can give your location to someone.

Odusko

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As long as the crime is committed the law will definitely take its course because taking such bitcoin from Sink Road which is one of the biggest Bitcoin scams in history, the FBI will definitely take an analysis of all the wallets that are involved in those transactions and who own the exchange wallet.
Many times, cryptocurrency exchanges have been the major point in getting caught up with scammers, so having a KYC exchange account alone is enough to expose the identity of the wallet owner.

nakamura12

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I think the reason why it is linked to that person is because he sent it to an exchange where KYC is required and the BTC sent to the exchange can be traced since it is public. The owner is already linked to the btc that he deposited on the exchange even if it's not all the btc that this person got from silk road. There could be a chance where he didn't get caught if he didn't leave anything that can link to his identity. This is why many people avoid using exchange that requires KYC to buy and sell crypto.

Bitco55

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When you said, "How is Bitcoin linked to the main owner?"

I wasn't expecting Jimmy but then the story of Jimmy Zhong and the Silk Road incident has got to be the biggest crime story in the history of cryptocurrency. Anyway, I think the answer to your question was literally already written by you before you asked the question.

About 9 years after his theft, he made a huge mistake which cost him imprisonment for 1 year and 1 day. That mistake was transferring Bitcoin to a crypto exchange that followed KYC policy and was traced to his home in Georgia. Afterward, he was arrested.

Alpha Marine

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It's very possible. With the right resources, the security agency can just keep watching the movement of the coins in the address. They don't know the owner of the address so they can't make an arrest, but the moment he made that transfer to a KYC exchange, he revealed himself. He submitted his details to the exchange so they know who he is, where he lives, what he does for a living, his age, and his face. They know every single thing about him.
He must be a novice or he's just plain stupid because he must have known that sending that Bitcoin to a CEX exposed him. It's a good thing he got caught because 800k is a lot of money.

Kelward

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Quote from: Abu-Naim on January 30, 2024, 09:50:23 AM

Quote from: Baghdad on January 30, 2024, 09:38:02 AM

Envisioning the digital tech deeply the thoughts of privacy have died away for wants to track criminals. The privacy never stayed, staring at the responses above me. Not Trying to complicate the thread, was there ever a certain day where the network was private and people staying truly anonymous and untracked?

People are anonymous in the blockchain, only your transactions are tracked, no name or identity is attached to your wallet, therefore no one knows who own a particular wallet unless if it is a centralized exchange wallet. According to the overall story, Jimmy was caught after sending $800 worth of Bitcoin to centralized KYC exchange, which means since he stole the Bitcoin, his bitcoin wallet address was under watch list, but nobody knows the owner of the wallet until he made a transaction to a centralized exchange wallet that reveled his identity because if the KYC he submitted in the exchange. This is another reason to avoid CEX.

KYC in centralized exchanges goes against the privacy of Bitcoin, the moment a person submits their KYC it's no longer private and the identity of the wallet owner can revealed if it's an address that is being monitored by the authorities. I think that it's only p2p transaction between two parties that their privacy can be guaranteed, so jimmy, probably didn't get an accomplice to do the p2p with and he went to a CEX and got bursted. So I can say that Bitcoin can only be linked to the right owner when the owner submits their KYC, otherwise Blockchain don't require names and the identity of the wallet owner will remain anonymous.

pinggoki

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Quote from: kryptqnick on January 30, 2024, 10:22:31 AM

People like that usually make mistakes along the way. The owner of Silk Road himself used an email with and his real name and surname online, which gave him away. This Jimmy guy reported some of his BTC being stolen, which raised suspicions about where he got that kind of money from. If you don't leave your own identification info, BTC can't be traced back to you. But usually, people aren't careful enough, they leave a bunch of digital footprints and then can be deanonymized.

Didn't this also lead to the arrest of the founder of Silk Road Ross Ulbricht or it's a different incident because if I remember correctly, he's got captured the same way too right or was it something about using a library computer? I believe that the reason that he's not careful is because he thought that he's gotten away with it and that he's already like an innocent so he didn't care too much when he called about the stolen bitcoins that was stolen from him too which is an twist of fate for him, getting arrested because of karma.

Wiwo

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Quote from: Baghdad on January 30, 2024, 08:55:52 AM

Read this fascinating story of a young bitcoin fellow named Jimmy who stole from silk road. The site happened to have a glitch and Jimmy withdrew 50,000 btc. The owner of silk road contacted him when it appeared to him, that 50k btc disappeared from his wallet due to the glitch, but Jimmy afforded him no help. Later, Jimmy transferred $800 to a KYC enabled exchange, and the cops were able to link it back to the stolen 50,000btc from silk road. How possible is this?

This is a simple thing and anyone following the wallet that the stolen funds was sent to will have follow up of whoever and where ever the bitcoin is sent to, so this should not be a misery to you at some point because at some point you need to give up some privacy anytime you chose to use a centralised platform like exchangeszl, and from this user incident, you can see that the coin was traced to his kyc exchange wallet and he was caught.

Bitcoin is like every other currency, once you have commited a crime by taking coins that is not your own, the authorities will have to right to do a fosice analysis on your wallet and sometimes, they can request for other information from exchanges.

kryptqnick

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People like that usually make mistakes along the way. The owner of Silk Road himself used an email with and his real name and surname online, which gave him away. This Jimmy guy reported some of his BTC being stolen, which raised suspicions about where he got that kind of money from. If you don't leave your own identification info, BTC can't be traced back to you. But usually, people aren't careful enough, they leave a bunch of digital footprints and then can be deanonymized.

Maus0728

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It's the public ledger, the investigation probably is keeping an eye on the movements of the bitcoins from a different wallet which would then make it difficult for the thief to do anything since their move is basically noted and observed, it just so happens that we need money to survive and Jimmy here is in a pinch on what to do with the money and where to get so he ends up having to use a part of that bitcoin, could've waited a little while and let the heat die down but no, greed got to him.

Abu-Naim

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Quote from: Baghdad on January 30, 2024, 09:38:02 AM

Envisioning the digital tech deeply the thoughts of privacy have died away for wants to track criminals. The privacy never stayed, staring at the responses above me. Not Trying to complicate the thread, was there ever a certain day where the network was private and people staying truly anonymous and untracked?

People are anonymous in the blockchain, only your transactions are tracked, no name or identity is attached to your wallet, therefore no one knows who own a particular wallet unless if it is a centralized exchange wallet. According to the overall story, Jimmy was caught after sending $800 worth of Bitcoin to centralized KYC exchange, which means since he stole the Bitcoin, his bitcoin wallet address was under watch list, but nobody knows the owner of the wallet until he made a transaction to a centralized exchange wallet that reveled his identity because if the KYC he submitted in the exchange. This is another reason to avoid CEX.

Apocollapse

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Quote from: Baghdad on January 30, 2024, 09:38:02 AM

Envisioning the digital tech deeply the thoughts of privacy have died away for wants to track criminals. The privacy never stayed, staring at the responses above me. Not Trying to complicate the thread, was there ever a certain day where the network was private and people staying truly anonymous and untracked?

It's Monero, of course it's not as easy as that to stay anonymous even you've use the most anonymous coin.

The problem of staying anonymous while using cryptocurrency is, when you're want to cash out your coins. I mean, you're need to use bank accounts or something like that to receives money, if you can't explain the source of your funds, you're in trouble.

Baghdad

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Quote from: bettercrypto on January 30, 2024, 09:29:12 AM

That's really possible, and all of that can be seen in the blockchain history itself—all the addresses that made a transaction deposit or withdrawal. From that address, it can also be determined where it came from, whether it is from a centralized or decentralized exchange platform, and sometimes it is from the gambling platform here at the casino.

I just can't determine whose name; I just don't know if from the exchange they can determine which person did this transaction; that's what I'm not sure how or if it is possible.

Envisioning the digital tech deeply the thoughts of privacy have died away for wants to track criminals. The privacy never stayed, staring at the responses above me. Not Trying to complicate the thread, was there ever a certain day where the network was private and people staying truly anonymous and untracked?

Mia Chloe

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Aside from the fact that the Bitcoin Blockchain is a decentralized public ledger, Jimmy already let his guard down by being careless with his privacy. The tracking was way too easy due to the fact that he had already given away his kyc information to an Exchange. Tracking with his IP address alone would have been more tasky for the FEDs but he make it easier since his KYC information was readily available with an exchange. Probably if he had used a mixer the entire process might have played out differently.

bettercrypto

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That's really possible, and all of that can be seen in the blockchain history itself—all the addresses that made a transaction deposit or withdrawal. From that address, it can also be determined where it came from, whether it is from a centralized or decentralized exchange platform, and sometimes it is from the gambling platform here at the casino.

I just can't determine whose name; I just don't know if from the exchange they can determine which person did this transaction; that's what I'm not sure how or if it is possible.

Jawhead999

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Honestly the coins that worth $800 isn't enough to prove if he's the fraudster, but since the police found his cold storage and other collections related to Bitcoin, it's over.

It's really ridiculous he was making such mistakes, I'm imagining what if Jimmy send Bitcoin worth of $800 to many random addresses and they withdraw the money in centralized exchanges. Huh

criptoevangelista

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It is possible because the blockchain is public, anyone can track the transactions, despite not having a name linked to a wallet, in this case he left traces and was caught, which in the end is what always happens to those who decide to go to the world of crime.

Baghdad

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Read this fascinating story of a young bitcoin fellow named Jimmy who stole from silk road. The site happened to have a glitch and Jimmy withdrew 50,000 btc. The owner of silk road contacted him when it appeared to him, that 50k btc disappeared from his wallet due to the glitch, but Jimmy afforded him no help. Later, Jimmy transferred $800 to a KYC enabled exchange, and the cops were able to link it back to the stolen 50,000btc from silk road. How possible is this?

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