I was reading about the Sheep Marketplace:

Victims of the theft have attempted to identify the thief by sending "tagged" bitcoins to his accounts, using the public nature of bitcoin transactions to follow these moneys through the "blockchain" record of transfers.

What are "tagged" Bitcoins and how do they work? How do they differ from regular Bitcoins?

1 Answer 1



Source: https://www.theguardian.com/technology/2013/dec/09/recovering-stolen-bitcoin-sheep-marketplace-trading-digital-currency-money

I think it just means that some users discovered this address: 1Eg8WSxvfeZaKmqhNZrECTUb58x3y1AWYN and maybe few others involved in their past transactions to the darknet market. They tried to send small amounts to these addresses hoping they could track when its moved.

  • How exactly are these small amounts tracked? Isn't it sufficient to just track the address without having to send small amounts? What do they gain from tracking the movements?
    – Flux
    Aug 27, 2020 at 15:02
  • 1. Chain analysis 2. If you don't send anything, will have to wait until owner of that UTXO decides to move bitcoin. You send extra hoping to see some activity. 3. They got scammed so they obviously were hoping to get their money back somehow
    – user103136
    Aug 27, 2020 at 15:19
  • Also read about dust attack : bitcoin.stackexchange.com/questions/81508/…
    – user103136
    Aug 27, 2020 at 15:19

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