What Will Happen If the Mt. Gox Stolen Funds Start to Move

[Jason Brendon]

What Will Happen If the Mt. Gox Stolen Funds Start to Move?
1FeexV6bAHb8ybZjqQMjJrcCrHGW9sb6uF
This is where the stolen funds got sent to.
With the increasing centralization of mining these days (https://mempool.space/mining), as of today, the No.1 miner Foundry USA concentrates 30.08% of all the hashing power.
What will happen if the stolen funds start to move?
Will it never get confirmed? (no miners dare to include it in the block)
Will it be rejected to be mined? (miners find it is a legal issue so they say no, this is not going into my block)
What the hell will happen?
Share your thoughts pls.

[btc78]

What will happen if the stolen funds start to move?

Obviously if the stolen funds start moving, this would be an opportunity for authorities to track wherever the funds will go to. It’s going to be very risky for whoever will move it and for sure will have all eyes on them.

Will it never get confirmed? (no miners dare to include it in the block)
Will it be rejected to be mined? (miners find it is a legal issue so they say no, this is not going into my block)
What the hell will happen?
Share your thoughts pls.

It depends on the miners of course. I think money can make anyone do anything so if the transaction fee is more than enough, any miner can ignore the “ethical concerns” and just process it.

[mindrust]

Bitcoin is and should be censorship resistant. If a miner refuses to mine these blocks, hopefully some other will. That’s how it should be. Otherwise you can say goodbye to bitcoin. If the bitcoin miners will censor certain transactions because the law enforcement demands it, how can we say that bitcoin is still censorship resistant? How is this any different than the legacy banking where they can freeze any asset of anyone they want?

Maybe we’ll have to completely abandon bitcoin and move to the completely anonymous coins like monero which no centralized exchange will be selling. (D’uh)

This would take us back to the early 2010’s. Zero adoption days.

[Ambatman]

Not everyone are aware of the wallet address that the stolen funds went to
If it is sent Bit by bit it could be found out that's it's moving but a miner can choose to confirm it without even knowing or caring about where or whose funds it is.
Most times is all about profits.
It's bitcoin. It was created so we can be the true master of our funds.
If they believe the risk is worth it they take it. The market would be impacted negatively if those funds successfully moves, because many would be in fear on when such fund would be sold. But it's harder than it looks. There is a reason they haven't moved the funds ever since.

[Jason Brendon]

It depends on the miners of course. I think money can make anyone do anything so if the transaction fee is more than enough, any miner can ignore the “ethical concerns” and just process it.

I think it should be the other way around. Even though the fee is set super high, no one dares to mine it as it is no longer “ethical concerns”, it is legal problems.. considering that all the mining pools except (Ocean) require KYC. Do you think anybody dares to touch that?
So, eventually, no one will want to mine that. It will sink to the very bottom of the mempool.
This is my thought. Feel free to feel differently.

If a miner refuses to mine these blocks, hopefully some other will. That’s how it should be. Otherwise you can say goodbye to bitcoin. If the bitcoin miners will censor certain transactions because the law enforcement demands it, how can we say that bitcoin is still censorship resistant? How is this any different than the legacy banking where they can freeze any asset of anyone they want?

Unfortunately, it is happening right now. It's not censorship-resistant as you might think it is.

Not everyone are aware of the wallet address that the stolen funds went to

You think every miner is not aware of this address? Regardless of the value, whatever is being sent from that address will be filtered out so its transactions will be ignored.

[Ambatman]

Not everyone are aware of the wallet address that the stolen funds went to

You think every miner is not aware of this address? Regardless of the value, whatever is being sent from that address will be filtered out so its transactions will be ignored.

Yeah I thought so
Well I guess it's me using the general public as a case study rather than just miners.
So it's like a mining 101. Know the wallet address.

[Lucius]

What Will Happen If the Mt. Gox Stolen Funds Start to Move?
~snip~

Do you think whoever is behind the hack is so stupid that he would send that BTC directly to CEX? The one behind it can make a thousand transactions between his own wallets and then send the "mixed coins" to a mixer, and then he can do whatever he wants with them.


Please read the forum rules - Posting multiple posts in a row is not allowed.

[Rabbitqt]

What Will Happen If the Mt. Gox Stolen Funds Start to Move?
1FeexV6bAHb8ybZjqQMjJrcCrHGW9sb6uF
This is where the stolen funds got sent to.
With the increasing centralization of mining these days (https://mempool.space/mining), as of today, the No.1 miner Foundry USA concentrates 30.08% of all the hashing power.
What will happen if the stolen funds start to move?
Will it never get confirmed? (no miners dare to include it in the block)
Will it be rejected to be mined? (miners find it is a legal issue so they say no, this is not going into my block)
What the hell will happen?
Share your thoughts pls.

Wouldn't the address be blacklisted by all exchanges and providers? Trying to sell those coins would almost be impossible, I would imagine. (Correct me if I'm wrong.)

Even from the black market perspective, these coins would be way too hot. No "BTC for cash" sellers would be game enough to handle these coins.

[Jason Brendon]

Do you think whoever is behind the hack is so stupid that he would send that BTC directly to CEX?
Please read the forum rules - Posting multiple posts in a row is not allowed.

To CEX or any address, as long as it is coming from this address will be rejected. This is what i think regardless it's CEX or not.

[betswift]

If the stolen Mt. Gox funds start moving, it would likely create a buzz in the cryptocurrency community. Since blockchain transactions are public, people would notice the movement, leading to speculation and possibly impacting Bitcoin's price. However, I think miners, who validate transactions, are primarily motivated by the transaction fees and the block reward, not the origin of the funds. They might not necessarily refuse to confirm such transactions unless there's a legal directive to do so. The decentralized nature of Bitcoin means there isn't a central authority to block or reject transactions based on their history. It would be a significant event, but on my mind the funds could indeed move if someone attempts to do so.

[buwaytress]

Bitcoin will crash!

That's the speculation each time they talk about MtGox coins. Also the same talking about Silk Road coins. Never mind that they make up but a drip into the ocean of volume each day on public exchanges. Never mind they probably won't move on exchanges but on OTC. People always seem to think they'll just cause a massive shudder of selloff.

Get over it, nothing to see here =)

[Jason Brendon]

The decentralized nature of Bitcoin means there isn't a central authority to block or reject transactions based on their history. It would be a significant event, but on my mind the funds could indeed move if someone attempts to do so.

Is it really? Today the No1 mining pool controls 30% hashing power. If you combine the No1. and No2. They two together control over 50%. Both of them are KYCed.  You think it is really decentralized?

Bitcoin will crash!

That's the speculation each time they talk about MtGox coins. Also the same talking about Silk Road coins. Never mind that they make up but a drip into the ocean of volume each day on public exchanges. Never mind they probably won't move on exchanges but on OTC. People always seem to think they'll just cause a massive shudder of selloff.

Get over it, nothing to see here =)

No, I am not here to discuss the massive selloff. I am not interested in the price action. I am more interested in knowing the decentralization(or centralization) of Bitcoin mining in today's world.  

[Lucius]

@Jason Brendon, you obviously have problems with understanding what you are reading, because how else can you explain that I wrote to you that you are doing wrong, and you are still doing the same thing? Instead of such (meaningless) questions, go to the Meta board and start reading, maybe you'll learn something in the end.

[Upgrade00]

Is it really? Today the No1 mining pool controls 30% hashing power. If you combine the No1. and No2. They two together control over 50%. Both of them are KYCed.  You think it is really decentralized?

It is potentially decentralized. Centralization should come with control and the ability to manipulate the system to suit your wishes. When you run the risk of losing your position if you try to act with malicious intent, you do not control or regulate the system but benefit from it.

There is no legal implication of accepting an initiated transaction from that address, they only have to give authorities information in it should it be demanded.

[BitMaxz]

To CEX or any address, as long as it is coming from this address will be rejected. This is what i think regardless it's CEX or not.

Miners have nothing to do with the transaction whether the transaction came from stolen funds or not. Maybe mining pools can but by default pools and most nodes usually accept any kinds of transaction except those with low fees. However, like others said no CEX will accept this kind of transaction if they found it was from that address then the owner of the account will be under investigation.

[sokani]

The Bitcoin network is designed to be censorship-resistant but with the increasing centralization of the mining pool, chances are the tx will be filtered out and not added to a block. This is based on a comment by F2pool's co-founder, Chun Wang on X, though the tweet is no more available.

"Why do you feel surprised when I refuse to confirm transactions for those criminals, dictators and terrorists? I have every right not to confirm any transactions from Vladimir Putin and Xi Jinping, don’t I?"

[Catenaccio]

You think every miner is not aware of this address? Regardless of the value, whatever is being sent from that address will be filtered out so its transactions will be ignored.

Is that address in a sanctioned list?

If Bitcoin mining pools, Bitcoin miners refuse to confirm transactions from an address, it's censorship on Bitcoin blockchain and it is not Satoshi Nakamoto's vision. I hate censorship on Bitcoin blockchain.

I believe Bitcoin mining pools and miners won't be sanctioned if they confirm a transaction sent from any address.

The Bitcoin network is designed to be censorship-resistant but with the increasing centralization of the mining pool, chances are the tx will be filtered out and not added to a block. This is based on a comment by F2pool's co-founder, Chun Wang on X, though the tweet is no more available.

"Why do you feel surprised when I refuse to confirm transactions for those criminals, dictators and terrorists? I have every right not to confirm any transactions from Vladimir Putin and Xi Jinping, don’t I?"

It's over reaction.

[Plaguedeath]

Stolen coins has nothing do with miners who include the transactions to the block, they're own the address and they didn't have any access to the address. The transactions will be included to the block and confirmed ASAP especially they willing to pay high fees.

That address own around 80K Bitcoin or worth of $5.6 Biliion, it's 1/6 of Bitcoin 24 hours volume, so it could affect 16% of Bitcoin price.

[sokani]

It's over reaction.

Yea, you're right and having gone through the replies, I think mindrust and Upgrade00 best explains it. If a miner will not confirm a tx for whatever reasons, another miner will definitely pick it up as long as the required transaction fee is paid. Also if it gets confirmed, there's not going to be a blowback from the authorities for confirming the tx from a blacklisted address, since it is practically impossible to verify the identity of miners who process a transaction.

[Zaguru12]

Stolen coins has nothing do with miners who include the transactions to the block, they're own the address and they didn't have any access to the address. The transactions will be included to the block and confirmed ASAP especially they willing to pay high fees.

In as much as we have many miners and decentralization is a core part of bitcoin i wouldn’t be surprised to see some pools actually refusing to include the transaction into their block. We have seen in the past how pools like F2Pool and Mara have both censored some transactions they believed is illegal. What if many of this pools actually see this bitcoins too as stolen coins and don’t want to have them in their wallet. Although it will be bad and to me a direct attack on the decentralized system of bitcoin but I wouldn’t be too surprised.

That address own around 80K Bitcoin or worth of $5.6 Biliion, it's 1/6 of Bitcoin 24 hours volume, so it could affect 16% of Bitcoin price.

The question will be which exchange will be able to handle such sell, no single exchange has such liquidity. Only binance even has up to $5Bn liquidity so the impact could be more of it is moved between many exchanges and sold there