old Silkroad Seized Address being used by CoinBase?

[shinoda001]

Hi,

An individual decided to purchase a subscription to the VPN service and paid for it using Bitcoin.

Because of the distributed public ledger of Bitcoin, his curiosity allowed him to follow the money. He was quite shocked to see that a large portion of the payment had been sent onwards to the Silkroad Seized Coins address.

Link here: https://blockchain.info/address/1PycNckcTw39yd7x6CGZgtTRvbYWsEDyVn

VPN staff says:

Coinbase and BitPay are our Bitcoin payment processors. The address displayed by them and which you transfer BTC to has nothing to do with us: it is a one-time generated address to collect Bitcoin for us, just like any other payment processor does. What the payment processor then does with the collected Bitcoin to each generated address is a business of the payment processor only and we don't see why you should be worried about that.

Is this plausible? Or is Coinbase really using old tainted addresses facing the popular FBI-owned wallet?

Thank you.

[shinoda001]

Any why does the Silkroad Seized Coins address continue to receive so much money?

Are people spamming the address? Or are there automated payments being made?

https://blockchain.info/address/1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX

Thanks.

[HabBear]

If the Silk Road guy was using Coinbase for any of his personal or business transactions it would explain why the address is linked to Coinbase. I don't think this is news...unless there's more information or connection you can bring to us about it. Hey, maybe I'm missing something obvious.

[pooya87]

are we sure that the 1F1tA..... address is really Silkroad Seized Coins? because you can tag anything on blockchain.info for example i can call my bitcoin address the same thing so you see it that way by simply signing a message.

i may be wrong but it seems unlikely to me that US treasury has gone on blockchain.info and signed a message for indicating this address is in their possession!
https://blockchain.info/tags

[bryant.coleman]

Any why does the Silkroad Seized Coins address continue to receive so much money?

Are people spamming the address? Or are there automated payments being made?

https://blockchain.info/address/1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX

Thanks.

There can be two possibilities.

1. The mentioned Bitcoin address does not belong to Silk Road. Most probably, it was tagged by mistake.

2. The wallet belongs to Silk Road, and pending/scheduled payments are still being made.

That said, I can see that most of the payments are micro-transactions (usually BTC0.0001 or BTC0.001), but some involved significant amount of coins (I could see one deposit of BTC0.51084).

[Kakmakr]

This is very interesting, but I doubt if Coinbase would be linked to Silkroad in any way. The KYC and AML regulations they have to adhere to, will have identified any link to Silkroad or coins connected to illegal activities. These coins or addresses are incorrectly tagged in my opinion. ^hmmm^

Has anyone posted this question to Coinbase for a answer?