In early October of this year, online Bitcoin marketplace and ‘the eBay of drugs’ The Silk Road was taken down by the FBI. Just after the black vans took Silk Road head honcho [Dread Pirate Robberts] away, a new Bitcoin marketplace came onto the scene called Sheep Marketplace. Sheep Marketplace closed after revealing that 5400 bitcoins – or $5.8 million USD were stolen by the user EBOOK101 by exploiting a bug in the Sheep site.
Over this last weekend, it was revealed this bug in the Sheep Marketplace site wasn’t responsible for the loss of 5,400 coins, but instead 96,000 BTC, or $100 million USD, making this one of the largest thefts of all time.
Whoever was responsible for this theft didn’t make a clean getaway. Because the Bitcoin block chain records the history of every transaction, laundering bitcoins is harder than it seems. The most common method is to ‘tumble’ the bitcoins – sending them through multiple wallets, combining and recombining them, until tracking groups of bitcoins just becomes too hard.
[sheeproadreloaded2] over on Reddit managed to track these bitcoins to this bitcoin address, an amazing feat that also means there are 96,000 coins in a wallet somewhere that can’t be spent or cashed out without the thief telling the world who he is.
As far as crimes of the century go, this one is at least in the top ten. Unless the thief behind this heist is extraordinarily smart, though, his identity will most likely be found out eventually.