Introduction
An onchain analyst, Zachxbt, recently discovered that 4,800 bitcoins that were stolen from the now-defunct darknet marketplace Abraxas have been transferred to a bitcoin mixing service. Abraxas exit scammed in November 2015 after less than a year of operation, and the stolen bitcoins had remained untouched since then.
Bitcoin Movement and Consolidation
Zachxbt reported on the social media site X (formerly Twitter) that an entity moved approximately 4,800 bitcoins, valued at $144 million, from an Abraxas wallet to a mixing service. This transaction signifies the first movement of the stolen bitcoins since the marketplace's exit scam in 2015. The entity not only consolidated the funds but also deposited them into a bitcoin mixer.
Abraxas's Dark Past
Abraxas, which started operating around the same time as other infamous darknet marketplaces like Alphabay and Agora, launched on December 13, 2014. However, on November 5, 2015, Abraxas suddenly became inaccessible, leaving its customers and vendors in distress. The bitcoin wallets associated with Abraxas were emptied in March 2016.
Aftermath of Abraxas Exit Scam
Following the exit scam, Abraxas users and vendors were left searching for alternative darknet marketplaces. Unfortunately, many of these new platforms also defrauded their users. Research indicates that Agora, another popular marketplace, shut down around the same time as Abraxas, leading users from both Abraxas and Agora to migrate to Alphabay.
Alphabay's Ascendancy and Demise
Alphabay quickly rose to prominence and became the leading darknet marketplace after the downfall of Abraxas and Agora. However, its reign was short-lived, as law enforcement seized the platform in July 2017. The recent movement of the Abraxas bitcoin stash remains a mystery, but it is worth noting that the funds are now worth $142 million more than they were in 2015.
Conclusion
The sudden movement of the stolen bitcoins from the Abraxas scandal raises questions about the motives behind the transfer. The stolen funds, which had been dormant for years, have now resurfaced and are significantly more valuable. What do you think about this development? Share your thoughts and opinions in the comments section below.
Frequently Asked Questions
What are the advantages of a IRA with a gold component?
There are many benefits to a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You decide how much money is put in each account and when it is withdrawn.
You have the option of rolling over funds from other retirement account into a gold IRA. This allows you to easily transition if your retirement is early.
The best thing about investing in gold IRAs is that you don’t need any special skills. They are readily available at most banks and brokerages. Withdrawals can be made instantly without the need to pay fees or penalties.
That said, there are drawbacks too. Gold has always been volatile. It is important to understand why you are investing in gold. Are you seeking safety or growth? Is it for security or long-term planning? Only then will you be able make informed decisions.
If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. One ounce won't be enough to meet all your needs. Depending on your plans for using your gold, you may need multiple ounces.
You don’t necessarily need a lot if you’re looking to sell your gold. You can even live with just one ounce. However, you will not be able buy any other items with those funds.
Is physical gold allowed in an IRA.
Gold is money and not just paper currency. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Today, investors invest in gold as part a diversified portfolio. This is because gold tends do better in financial turmoil.
Many Americans today prefer to invest in precious metals, such as silver and gold, over stocks and bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
Another reason is that gold has historically outperformed other assets in financial panic periods. The S&P 500 declined 21 percent during the same period. Gold prices increased nearly 100 per cent between August 2011 – early 2013. Gold was one asset that outperformed stocks in turbulent market conditions.
One of the best things about investing in gold is its virtually zero counterparty risk. Even if your stock portfolio is down, your shares are still yours. Gold can be worth more than its investment in a company that defaults on its obligations.
Gold provides liquidity. This allows you to sell your gold whenever you want, unlike many other investments. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows you to profit from short-term fluctuations on the gold market.
How is gold taxed in an IRA?
The fair value of gold sold to determines the price at which tax is due. You don't pay taxes when you buy gold. It's not considered income. If you sell it later you will have a taxable profit if the price goes down.
As collateral for loans, gold is possible. Lenders try to maximize the return on loans that you take against your assets. This often means selling gold. It's not guaranteed that the lender will do it. They may just keep it. Or, they may decide to resell the item themselves. The bottom line is that you could lose potential profit in any case.
You should not lend against your gold if it is intended to be used as collateral. You should leave it alone if you don't intend to lend against it.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
External Links
irs.gov
finance.yahoo.com
forbes.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Legal – WSJ
How To
Tips to Invest in Gold
Investing in Gold is one of the most popular investment strategies worldwide. There are many advantages to investing in Gold. There are many ways to invest gold. Some people prefer to buy gold coins in physical form, while others prefer to invest in gold ETFs.
Before you purchase any type or gold, here are some things to think about.
- First, verify that your country permits gold ownership. If you have permission to possess gold in your country, you can then proceed. You might also consider buying gold in foreign countries.
- You should also know the type of gold coin that you desire. There are many options for gold coins: yellow, white, and rose.
- Thirdly, it is important to take into account the gold price. It is best to start small and work your way up. Diversifying your portfolio is a key thing to remember when purchasing gold. You should invest in different assets such as stocks, bonds, real estate, mutual funds, and commodities.
- Remember that gold prices are subject to change regularly. Keep an eye on current trends.
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