Is it infidelity or money laundering? Exploring the story behind the nd4.eth address.

Author: Haotian, Senior Cryptocurrency Security Practitioner Source: Twitter, @tmel0211

The mysterious nd4.eth address can be regarded as the pioneer of on-chain performance art.

After burning 2500 ETH on July 26th, it burned 1BAYC, 1MAYC, and 1BAKC on August 10th, with a total value of nearly 5 million US dollars.

This astonishing burning art not only triggered a begging show on the entire chain, but also received nearly 300 on-chain addresses begging to this address in just 2 days. There were also more than a dozen scammers who impersonated the nd4.eth ID and deceived users to participate through Twitter airdrops, on-chain coin issuance, and liquidity injections.

So, besides that, what other related addresses does nd4.eth have? How much assets may be burned? And the identity behind nd4.eth? Is it really as simple as being betrayed by a girlfriend as rumored on the Internet?

First of all, through on-chain screening, some addresses highly related to nd4.eth (with large transfers) were preliminarily found. These addresses are highly likely to be controlled by the same person, including: endit.eth, enditall.eth, noth.eth, blackholefaller.eth, ndnow.eth.

Secondly, the total balance of the above addresses is currently about 3.7 million US dollars. The main source is the staked assets of nd4.eth on platforms such as GMX, GNS, gTrade, ApeStake, etc. In addition, the NFT balance includes 1 CryptoPunk #5237, 1 MAYC #3573, 1 BAYC #71, 1 BAYC #289, with a total value of about 250,000 US dollars. Therefore, the burning art master nd4.eth still has about 3.95 million US dollars to be burned (incomplete statistics) up to now.

There is currently a big controversy about whether the 0x0xdEAD000000000000000042069420694206942069 transferred to nd4.eth involves the black hole issue. This address is composed of four sets of cycles: DEAD +0000000000000000+42069, which has a strong hacker cultural connotation. To be fair, it is not a real black hole, but an address where the matching of public and private keys is almost impossible to calculate with current technology computing power. Therefore, some projects or individuals use it as a burn address, such as SHIB. Regarding this issue, it cannot be simply denied. In theory, it is possible to calculate, but unless it has been calculated or can prove that the address has been calculated, it is similar to proving the existence of Satoshi Nakamoto’s private key.

Regarding the identity behind nd4.eth, there are some speculations:

1. Girlfriend cheating theory: Currently, the mainstream view supports this theory, but careful observation will reveal some details. For example, domain names such as end it, end it all, nothing, blackhole imply emptiness, void, and termination. In addition, he also released an NFT called Blackhole2 a year ago, which does not seem like an impulsive act due to recent girlfriend cheating, but more like a “performance art” that has been planned and plotted for a long time.

2. Analyzing the interaction traces of on-chain addresses, it was found that the upstream address of nd4.eth, enditall.eth, received a large transfer of 2285 ETH marked as Union chain on January 18, 2023. There are several possibilities regarding the situation of this address:

– It may be an OTC financial business of HitBTC. This address mainly comes from the hot wallet of the well-known exchange HitBTC. The incoming amounts are mostly large integers of 100ETH or more, and it frequently distributes small amounts of funds to other addresses such as the LianGuaiyout contract. It seems like a financial behavior but not entirely consistent.

– Similar to Changenow’s KYC-free OTC service providers, this is a centralized asset exchange platform where users can use fiat currency and other OTC methods to purchase assets. The platform then aggregates the assets to the hot wallet according to user demand and distributes small amounts of assets to users. This possibility is relatively high.

– It could also be a “water house” money laundering organization on the chain, with large sums of money coming in and small amounts going out in a scattered manner, similar to money laundering operations. In addition, the website associated with this address appears to be filled with the feeling of a Ponzi scheme, offering expert investment services to help users with cryptocurrency transactions, and its BTC address has received over 50,000 BTC. One possibility is that it is backed by a money laundering organization.

Based on the above logical reasoning, the situation may be more complex. Because nd4.eth is a big shot with a mysterious source of assets, most of its assets come from its own exchange deposits, and the largest asset association is Union chain, which may have subtle relationships.

However, even if the above speculation is true, we still cannot directly and definitively prove the reason for its large-scale destruction on the chain. We can only make further guesses, such as: it may be a service of an OTC provider, or there may be internal disagreement within a money laundering gang, or it may be an on-chain marketing activity comparable to the Buffett lunch, or it may even be a last-ditch resistance against judicial supervision… and so on, there are countless possibilities.

As for solving the case, I am not good at it, I can only add some laughter for everyone. After all, it is believed that with money, one can be capricious, especially when it comes to sudden huge wealth, it can make people imagine its unconventional uses even more.

In short, the above story is purely fictional, and if you think it is all nonsense, it doesn’t matter. However, through such on-chain data analysis, at least some data analysis skills can be improved.

It should be noted that there are currently many cases of impersonating the nd4.eth ID on Twitter, as well as suspicious contracts that appear to transfer large amounts of ERC20 altcoins from nd4.eth to other addresses and add liquidity in browsers. These are phishing and scam activities, so please stay alert.

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