Cryptocurrency Detective ZachXBT Uncovers Unusual ETH Withdrawals for MTG Cards

blockchain.news:

ZachXBT, a renowned cryptocurrency detective, has shared an analysis of a unique and unconventional use of significant cryptocurrency funds. According to his investigation, an unidentified individual withdrew over 11,200 ETH, valued at around $25 million, from Tornado Cash, a cryptocurrency tumbler known for its privacy features. This large sum of money was primarily used to purchase Magic The Gathering (MTG) trading cards, a popular collectible and competitive card game.

ZachXBT meticulously traced the flow of these funds, revealing a complex process involving multiple steps. The individual involved first withdrew the ETH in batches of 100 from Tornado Cash to a total of 11 different addresses. Following this, the ETH was converted to Wrapped Ethereum (WETH), which was then transferred to new addresses. The WETH was subsequently unwrapped back into ETH and converted into USDC, a stablecoin pegged to the US dollar. This USDC was then used to facilitate transactions with an MTG broker.

The identification of the MTG broker was a critical part of ZachXBT's investigation. He discovered the broker's involvement through cross-referencing usernames on Instagram and OpenSea, a popular platform for trading digital collectibles. Further inquiries into the broker's on-chain interactions with MTG sellers provided additional clarity. Interestingly, the buyer's behavior in these transactions was notable for several reasons. The individual appeared to be overpaying for the MTG items by about 5-10%, and the payments were made upfront in cryptocurrency. Despite these large transactions, the buyer's identity remained unknown to the sellers.

The investigation also revealed that the funds were distributed to various deposit addresses