A=B, A=D, then B=D: so Blocktrades = Darthknight

It seems that yesterday's article Darthknight = blocktrades = alpha = ... so on. included too much contents.

So for this article, I will simply focus on two things, briefly.
(1) Darthknight(Blocktrades) is a blatant liar.
(2) Darthknight is an alt of Blocktrades.

  • other issues such as 22.2, 22.8888 will be discussed in a different article to avoid unnecessary confusion.

1. Darthknight is a blatant liar.


@darthknight was created on February 11.

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This is his first post: link

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We all know that Justin Sun bought Steem Inc. on February 14 .

And he claims that "I happened to read a tweet from Justin Sun about their recent acquisition and figured I'd check it out and so here I am now".

What??? You already made an account a couple of days before the tweet... do you time travel? I don't think so... and you are simply lying from the very beginning.


In addition, this guy is not a new person as he claims in the first line: "I am new here".

As we will see in the next section, this is another lie, as this account is an alt of blocktrades.


2. Darthknight = Blocktrades


We all know that if A=B and A=D, then B=D.

A is @alpha, B is @blocktrades, and D is @darthknight.

A=B is clear: for example, blocktrades received Steem from @steemit with memo "owed payment to Blocktrades".

alpha.png


Now A=D part.

darthknight alpha.png

alpha and darthknight use the same Binance account. See that they use the same memo 101130147.

It does not matter whether blocktrades facilitated the token swap transaction or not: alpha and darthknight have sent to the same Binance account, more than 100,000 STEEM, many times.


  • It does not matter whether blocktrades owns like 100 alts - who cares? it's not relevant at all. All I point out is that alpha = blocktrades = darthknight.

  • As @timcliff and others mentioned, as blocktrades is an exchange, "it is possible that all of these linked transactions can be explained by users who are buying and selling Steem via the BlockTrades.us exchange." However, as @timcliff also pointed out, "The ones using the same memo are obviously the same user", and this part is all we need to confirm that alpha = darthknight.


Beneficiary setting:

50% for @faki who provided the account creation time info as a reply to the previous article.

50% for @donekim who summarized A=B=D explanation in Korean: [STEEM] Blocktrades = Darthknight인 아주 간단하고 명백한 이유

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A=B is clear: for example, blocktrades received Steem from @steemit with memo "owed payment to Blocktrades".

Agree on this part.

is all we need to confirm that alpha = darthknight.

This is not neccesarily true. If @darthknight purchased STEEM from the BlockTrades exchange and used his/her Binance memo during the purchase to have the STEEM sent to Binance, then you would see STEEM coming from one of the BlockTrades owned accounts (such as @alpha) into the Binance account using darthknight's memo.

Having @alpha use @darthknight's memo is not sufficient to prove that @darthknight is the keyholder for the @alpha account.

Thank you for the reply.

I am trying to follow your logic. Suppose the suggested possibility ("If @darthknight purchased STEEM from the BlockTrades exchange and used his/her Binance memo during the purchase to have the STEEM sent to Binance") happens. Then, the transaction would show

From: alpha(or some blocktrades account), To deepcrypto8, with the memo of darthknight's wallet address, 101130147.

So even in this case, it is true that 101130147 is the darthknight's Binance wallet.

And we can also confirm this with darthknight himself sending to deepcrypto8 with the same memo.

So it is clear that 101130147 is the darthknight's wallet. Let me know if you disagree.


If you search transactions with that memo, you may find that starting from 2018-05-28, lots of blocktrades' (known) accounts, omega/blocktrades/alpha/cleta/ashleigh/anastacia, have had more than 20 transactions with more than 20K STEEM sent to Binance. If you add them up, before the darthknight's transaction on 3/20 it is about 1.5M STEEM.

So for your theoretical case to work, it has to be that darthknight has bought the about 1.5M STEEM using blocktrades throughout about two years... and suddenly decided to write an introduction post with lies two months ago. Also, we all know that blocktrades charges high fees - an investor who trades more than 1M STEEM would rather send whatever coins directly to Binance to save on fees.

If you really believe that it were the case... well I don't know know what to say.


In any case, I appreciate your input again. I respect your decision regarding 22.2, and I am honored to have a productive conversation with you like this.

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I think these are some interesting points, however, both could be innocently explained, especially if D is a close acquaintance of B. D was probably making a speculative bet (not at all uncommon in crypto especially with talks of forks and acquisitions) and could have legal OTC deals with B.

'1. D definitely made his account before Justin's announcement. This is interesting.

  • D seems to have had the timeline confused, maybe hinting that D had some speculative information, perhaps obtained from B. Justin and Ned signed an NDL so we will never know who was privy to the sale. Some were even approached by Ned about buying Steem.
  • Tron and Justin Sun did have a few polls back in December and January strongly hinting at an interest in Steem. Large whales were probably aware something was up before the general public, they just have better resources and tend to swim together.

'2. A=B=D this theory is not nearly as interesting.

  • D only made 1 open transaction in that account before the announcement, it may have been a speculative bet that the announcement would boost the price of Steem.
  • Most of D's transactions came after Justin's announcement and from several different sources.
  • When buying and selling massive amounts of Steem to gain liquidity multiple exchanges and OTC trades with large stakeholders are not uncommon.
  • I'm not sure why it was directly sent to the exchange, perhaps that was part of their OTC agreement.

In any case, it is the business of D and B and other whales. Although interesting, it has nothing to do with his account being frozen on Steem.

It is also obvious that you discovered this information after 22.8888 was in place since it wasn't announced until after. This is very important when objectively considering your investigation.

Even if D = B, Justin Sun and Steem witnesses are intentionally running a code that specifically created to seize their assets. As far as I know, the excuse is to protect Steem Network Security (the real reason is to protect the price of Steem which is concerning). Two important facts are relevant:

  1. D is on power down which means his power is shrinking, this doesn't seem like the actions of someone who wants to take over Steem.
  2. There is a function to block witness voting from accounts. Correct me if I'm wrong, but if witness voting was a concern, only this function was necessary to use.

I'm trying to give you guys the benefit of the doubt here, but the actions of 22.8888 and this sudden witch hunt on B and D just don't add up unless the main reason is to protect the downward pressure of the price on Steem.

I appreciate your thoughtful reply. As @menerva already said, I also believe that you raised several issues that I need to think about.

I have not thought of OTC possibilities. While I still believe that the possibility is close to zero, it is still something that is worthy considering.

And for the 8888 part: I plan to write a separate article, but let me briefly write what I think:

  • It is not an attempt to protect the downward pressure on STEEM price - this softfork merely delays STEEMs from these accounts to be used before the further discussion/investigation to be done. As you pointed out, these STEEM may even get sold at higher prices. If we were to remove the downward pressure, we would have confiscated these accounts, like what HIVE did right after (or during) the "hardfork".

  • Revenge: again, not really. If it were to be a revenge, we would have included a lot more accounts like known spammers (xxxxxxxxxx), etc. And we would not have included more "neutral"/"conservative" accounts like roelandp.

I have not thought of OTC possibilities. While I still believe that the possibility is close to zero, it is still something that is worthy considering.

Yeah, I have no idea.

this softfork merely delays STEEMs from these accounts to be used before the further discussion/investigation to be done.

I always like more discussion. I look forward to your more detailed explanation.


I'm following your investigation and trying to be objective. More information helps me make better investment decisions even if I disagree with some opinions and question some facts.

Thanks for the post. You have some valid points which I'll have to chew on.

One point: Your statement that the witnesses have done this to "protect the price of steem", however seems like an assertion as well. It could be true, but i dont think theres a hard evidence.

It's definitely an assertion. Actually, there are 3 reasons to do 22.8888

  • protect the network
  • revenge
  • protect the price

The only one I think is unnecessary is to protect the network. If they are able to get >50%, technically choosing witnesses is their right. Justin has accepted the freezing of funds and censorship on Steem post 22.8888 so he cannot exactly be opposed to whoever has a consensus doing it. However, it's extremely doubtful they could get close to this since they were unable to between 22.5 and 22.8888 and have started power downs.

Doing it for revenge is understandable, but petty.
Doing it to protect the price makes sense. In the long run, it actually doesn't hurt if the price decreases because it allows people to sell who want out and people to buy who want in. The price can go up later and Justin promised to use Tron resources to help develop in the meantime.
That said I hope their accounts are unfrozen soon, no matter how you look at things, it's their Steem to sell. It would be ironic if the price went up a lot in the meantime and this ended up making them a ton more money from HODLing.

It would be funny to see your face when you realize that binance memo is because of using blocktrades exchange service.

BTW. It doesn't change the fact that you are criminals in this story, whether you prove that Darthknight is blocktrades or not.

You played a very dangerous game! And your stupidity won't save you (you = the real people behind these actions).

You may need some luck ;)
Good luck. :kiss:

Sounds like what you should have written to 22.2 Cabal like two months ago.

Good luck!

There's no confusion on my part. Blocktrades dishonestly and lies are clear to see.

It is nice to see Steemit is in safer hands now. Let's keep pushing past the hater's, spammers and salty trolls.

A reasonable explanation is that these accounts are friends or acquaintances and darthknight did not want verifying identity with shady exchanges therefore used blocktrades to facilitate transactions. I don't agree to freezing wallets on the blockchain because 3rd party exchanges can decide if they want to regulate criminal transactions. However, these matters relate to reputation of significant stakeholders and influences on STEEM and HIVE. If the dates are accurate, what tweet was darthknight referring to?

In general, I also agree with your statement " I don't agree to freezing wallets on the blockchain because 3rd party exchanges can decide if they want to regulate criminal transactions".

I believe that 8888 is only a temporary (and ofc reversible) measure and we will come up with a solution soon.

And for the "tweet".. he just lied. No other possibility for this one.

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