- Blockchain investigators traced the mysterious $31 million Bitcoin donation to the defunct AlphaBay dark web marketplace.
- The anonymous donor used multiple cryptocurrency mixing services and small cash-outs to conceal the criminal origins of funds.
- Chainalysis believes a major AlphaBay vendor with substantial marketplace holdings made the donation to Ulbricht.
The famous Ross Ulbricht from the Silk Road case again came into the limelight. It has been discovered that the $31 million Bitcoin donation to Ross Ulbricht, who was pardoned for his role in Silk Road, came from criminals. Investigators have discovered that the AlphaBay marketplace, which served as Silk Road’s replacement on the dark web, received a large amount of funds from the hacker.
Investigation Reveals Criminal Connection
Chainalysis reveals the main source of 300 Bitcoins sent to Ulbricht in May 2025. The digital assets were found in wallets linked to AlphaBay, which was running from 2014 until authorities stopped it in 2017.
Phil Larratt, director of investigations at Chainalysis, thinks the AlphaBay vendor was the one who made the donation. The large number of tokens implies that a person or group with a strong presence in the market was involved when the platform first started.
ZachXBT, an independent researcher, found that the donation had some suspicious patterns. The anonymous donor used several cryptocurrency mixing services to remain unidentified. They also changed small amounts of other digital currencies to keep their activities hidden.
Such strategies are usually signs of money laundering, say blockchain experts. The donor decided to use Jambler, which is a centralized mixing platform that is frequently linked to crime. However, people who care about privacy usually go for Wasabi or the discontinued Samourai wallet.
ZachXBT told WIRED magazine that the money was “a legitimate donation, but not legitimate funds.” Even though the money was donated legally, the complex methods used to launder it indicate that it came from criminal activity.
During “Operation Bayonet” in 2016-2017, Chainalysis helped discover Bitcoin addresses linked to AlphaBay. The investigation by many countries led to the market being shut down and arrests of the main operators.
The Bitcoin from AlphaBay’s shutdown has risen in value, possibly by as much as 40 times. As a result, it is possible to understand how a small amount of money from criminal activities could be used for a significant donation at present. Blockchain experts have not been able to identify the person behind the donation. Some believe Ulbricht’s cause was backed by ideology, but others claim his actions were meant to improve his reputation.
President Trump granted Ulbricht a pardon in January 2025 after he had served 12 years in prison for two life sentences. Cryptocurrency supporters and those fighting for criminal justice reform considered the Silk Road founder a symbol.
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