Irish police open Bitcoin wallet years after keys were apparently lost

A crypto wallet tied to a convicted drug dealer thought to have lost his wallet keys transferred 500 Bitcoin to Coinbase on Tuesday.

Irish national police say they have cracked one of 12 Bitcoin wallets linked to a convicted drug dealer, years after they were confiscated and their access codes were thought to be gone forever.

Ireland’s Criminal Assets Bureau (CAB) said in a statement on Tuesday that it had “gained access to and seized a cryptocurrency wallet” containing 500 Bitcoin (BTC), worth more than $35 million, with the help of Europol's European Cybercrime Centre.

“Europol hosted operational meetings at its headquarters in The Hague, the Netherlands and provided critical support to Bureau investigators and analysts with the provision of highly complex technical expertise and decryption resources vital to the success of the operation,” the CAB said.

The Irish Times reported on Tuesday that the wallet is one of 12 holding a total of 6,000 Bitcoin once owned by Clifton Collins, a drug dealer sentenced to five years in prison for growing and selling cannabis. The access codes were lost when the paper they were printed on disappeared.

Most of the time, losing a Bitcoin private key means there’s no way to recover it or crack the wallet; the funds are permanently inaccessible due to public-key cryptography.

Cointelegraph has contacted the CAB and An Garda Síochána for comment.

A wallet labeled “Clifton Collins: Lost Keys” by blockchain intelligence platform Arkham transferred 500 Bitcoin to Coinbase Prime on Tuesday, more than a decade after the coins were first deposited. 

Arkham lists Collins as controlling 14 addresses with total holdings of 5,500 Bitcoin, valued at more than $391 million.

Collins was arrested in 2017 after police searched his car and found a stash of cannabis, according to the Guardian.

Related: Coinbase, Microsoft and Europol take down phishing service ‘Tycoon 2FA’

Police said Collins used proceeds from his drug operation to purchase 6,000 Bitcoin in late 2011 and early 2012, spreading the holdings across 12 wallets. He stored the wallet keys on a single sheet of A4 paper, hidden inside the aluminum cap of a fishing rod case at his rental home.

After his arrest and sentencing, Collins' landlord cleared out his rental home and discarded his belongings. Collins, however, claimed the fishing rod case had been stolen before the landlord ever entered the property.

Magazine: Banks want to run Vietnam’s crypto exchanges, Boyaa’s $70M BTC plan: Asia Express

Source: CoinTelegraph