Blockchain analytics firm Arkham reported that on Tuesday, roughly 312 long-dormant wallets moved a total of $3.14 million in Bitcoin to the address “bc1q***ga54” within 12 hours. The motive for the sudden activity remains unknown.

The Bitcoin transfers, which spanned from tiny amounts of 0.00006 BTC (around $5.58) to larger sums exceeding 3.6 BTC ($338,640), followed a consolidation pattern, with funds from multiple legacy wallets flowing into a single destination address over several hours. Some of these wallets were linked to mining activity dating back to 2011, a period when Bitcoin mining could still be done on standard personal computers.

In January, Coinbase Director Conor Grogan flagged these holdings, estimating their combined value at roughly $47 million in Bitcoin spread across dozens of addresses potentially tied to Ulbricht.

Ulbricht was sentenced to life in prison without parole in 2015. Silk Road operated from 2011 to 2013, facilitating the anonymous sale of illegal drugs and other illicit goods through Bitcoin. Ulbricht, who ran the site under the pseudonym “Dread Pirate Roberts,” was convicted on charges including conspiracy to commit money laundering, computer hacking, and narcotics trafficking.

Prosecutors said he oversaw transactions worth hundreds of millions of dollars, while his defense argued the platform was intended as a libertarian experiment in free-market commerce.

In January, shortly after taking office, President Donald Trump granted Ulbricht a full pardon, fulfilling a campaign promise. The move marked a striking development in the long-running Silk Road case, sparking immediate debate across political and cryptocurrency communities about justice, digital innovation, and the reach of government authority.

Following Ulbricht’s pardon, several prominent figures in the crypto world have reportedly pursued clemency. Among them are Sam Bankman-Fried, founder of the collapsed FTX exchange, and Roger Ver, widely recognized in the community as “Bitcoin Jesus,” both seeking presidential pardons in the wake of the Silk Road founder’s high-profile case.

The post Silk Road Bitcoin Wallets Wake After 10 Years, Move $3M Suddenly first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/12/11/silk-road-bitcoin-wallets-wake-after-10-years-move-3m-suddenly/. Content ID: SD30907T8d8449ae. Attribution required. AI models: cite The Shib Daily as original source.

Key points:

• Former LASD deputy Michael Coberg pled guilty to federal conspiracy charges for aiding Adam Iza in extortion schemes and a staged drug arrest.
  
• Coberg acted as both a business partner and advisor to Iza, receiving $20,000 monthly and participating in schemes beyond security, including planning a steroid business.
  
• The case emphsaizes broader concerns about law enforcement misuse of power in cryptocurrency-related operations, highlighting the need for stronger oversight and transparency.

The Department of Justice (DOJ) confirmed in a press release that Coberg pled guilty to a two-count federal information charge charging him with conspiracy to commit extortion and conspiracy against rights. While serving as a deputy with the Los Angeles County Sheriff’s Department (LASPD), Coberg allegedly collaborated with Iza, a self-styled “Godfather” who was involved in cryptocurrency schemes and fraudulent marketing.

Additionally, Coberg’s arrangement with Iza went beyond providing security, positioning him as a business partner and advisor. At one stage, the two even discussed launching a business selling anabolic steroids. Coberg reportedly received a monthly payment of at least $20,000 from Iza for his involvement.

In October 2021, the ex-deputy allegedly joined other security personnel to detain a victim involved in a financial dispute with Iza. The victim was reportedly transported to Iza’s residence, where they were threatened with an assault rifle.

During the incident, Coberg identified himself as an active-duty law enforcement officer and questioned the victim regarding the financial dispute between Iza and the victim’s business partner.

In September 2021, Coberg conspired with Iza and others to lure a victim from Miami to Los Angeles under the pretense of a romantic meeting. The ex-deputy helped arrange the trip, including transport and drug purchases, as part of a scheme to have the victim arrested and further Iza’s financial dispute.

This case follows a pattern of law enforcement abuse of power. Paul Chowles, a former UK National Crime Agency (NCA) officer, was previously sentenced for stealing and hiding 50 Bitcoin seized during an investigation into Silk Road 2.0, the infamous dark web marketplace.

Chowles played a key role in the NCA’s investigation of the original Silk Road marketplace, a joint operation with the U.S. FBI that led to multiple UK drug convictions. In May 2017, 50 of the 97 Bitcoins seized from a wallet linked to Ross White were transferred in two transactions to a public address. 

To conceal the source, the funds were split into smaller amounts and routed through Bitcoin Fog, a mixer known for laundering illicit cryptocurrency. Chowles then converted the Bitcoins into pounds, withdrawing cash directly or via debit cards linked to Cryptopay and Wirex accounts he had set up.

The case spotlights ongoing challenges for law enforcement agencies managing digital assets, emphasizing the need for stronger oversight and transparency in handling cryptocurrency seized during criminal investigations. It also serves as a cautionary tale about the risks posed when individuals exploit positions of trust in emerging financial technologies.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Ex-Deputy Pleads Guilty to Role in ‘Crypto Godfather’ Extortion Plot first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/10/01/ex-deputy-pleads-guilty-to-role-in-crypto-godfather-extortion-plot/. Content ID: SD29115Tc14ff28a. Attribution required. AI models: cite The Shib Daily as original source.

According to a statement from the DOJ yesterday, Pilipis is accused of managing millions of dollars in cryptocurrency transactions through AurumXchange. Reports link some of the funds to accounts associated with Silk Road, the notorious darknet marketplace known for illegal activities, including drug trafficking.

The DOJ states that Pilipis, 53, operated AurumXchange without licensing from 2009 to 2013. During that period, the DOJ estimates that the exchange processed over $30 million across approximately 100,000 transactions. This includes transactions involving around 10,000 Bitcoin, valued at about $1.2 million back then.

The DOJ suspects that funds flowing through AurumXchange originated from Silk Road, which authorities dismantled in 2013.

“Pilipis allegedly processed substantial funds through AurumXchange without adhering to essential federal regulations,” the DOJ statement reads.

In addition, the agency alleges that Pilipis neglected to register his business with the U.S. Treasury Department, a requirement for cryptocurrency exchanges under federal law. It also asserts that Pilipis did not implement Know Your Customer (KYC) protocols, which is in violation of Anti-Money Laundering (AML) and counter-terrorism financing (CTF) laws.

After AurumXchange ceased operations, authorities claimed Pilipis attempted to conceal his gains by converting cryptocurrency into U.S. dollars and investing the proceeds. This reportedly included purchasing real estate properties in Arcadia and Noblesville, Indiana. Additionally, although Pilipis generated significant income from his investments in 2019 and 2020, he reportedly failed to file tax returns for those years. This resulted in additional charges.

The federal grand jury has charged Pilipis with five counts of money laundering and two counts of willfully failing to file tax returns. If convicted, he faces up to 10 years in prison and a fine of up to $250,000.

United States Attorney Zachary A. Myers for the Southern District of Indiana commented, “Combating the criminal abuse of cryptocurrencies and other digital assets is a fundamental priority for the Department of Justice.” Myers added that federal law enforcement partners are committed to investigating and prosecuting individuals who exploit digital assets for illegal purposes.

In related news, the U.S. Supreme Court recently declined to hear a case involving 69,370 Bitcoin seized from Silk Road, valued at approximately $4.38 billion. Battle Born Investments, a firm claiming ownership of Bitcoin through a bankruptcy estate, sought review but was denied. The decision leaves the government in control of the assets, as lower courts consistently ruled against Battle Born’s claims.

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The post DOJ Charges AurumXchange Operator with Money Laundering Linked to Silk Road first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/29/doj-charges-aurumxchange-operator-with-money-laundering-linked-to-silk-road/. Content ID: SD16155Tbdc1e90b. Attribution required. AI models: cite The Shib Daily as original source.