Hundreds of millions of dollars’ worth of Bitcoin (BTC) connected to a closed dark web marketplace have been abruptly transferred to a cryptocurrency mixer, according to on-chain statistics.
Blockchain investigator ZachXBT claims that something has transferred around 4800 BTC, or $144 million, from the now-closed Abaraxas darknet marketplace to a Bitcoin mixer.
“An entity shifted $480 million ($144 million) from the Abraxas darknet market, which was exit scammed in November 2015 after being idle for some time. They combined their money and deposited it in a Bitcoin mixer. An illustration of the movements from one of the addresses is shown in this graph.
The Financial Crimes Enforcement Network (FinCEN) published a fresh proposal earlier this week suggesting that the US government begin monitoring cryptocurrency tumblers.
FinCEN suggests rules that would require financial institutions to track, record, and report transactions involving cryptocurrency or “convertible virtual currency” (CVC) mixers, citing the USA Patriot Act in its proposal.
FinCEN claims that cryptocurrency tumblers, which move a user’s assets through a pool of other tokens with random origins in an attempt to hide their identity, are still being used abroad to perpetrate crimes including money laundering.
After conducting the required consultations, FinCEN determines that transactions involving CVC mixing within or involving a jurisdiction outside of the United States are of primary concern for money laundering. It also concludes that enforcing additional recordkeeping and reporting requirements would help mitigate the risks associated with these transactions.
By increasing openness, such reporting will make illicit transactions less appealing and valuable to criminal actors and help law enforcement find the people responsible for them. It will also aid in the prevention, investigation, and prosecution of illicit behavior.