US Government Moves Nearly $2 Billion in Silk Road Bitcoin to Coinbase

The feds on Monday moved almost $2 billion of seized Bitcoin from shuttered darkish net market Silk Street to Coinbase, blockchain information exhibits. 

Arkham Intelligence flagged the transactions by the US authorities. It mentioned that the Bitcoin was from the Silk Street market, and was in the end moved to America’s greatest digital asset alternate after a short cease at one other Bitcoin pockets. Finally, 19,800 BTC—or $1.92 billion value—was transferred.

Feds shut down the Silk Street on-line black market again in 2014. The platform was extensively used to purchase unlawful medication and providers—usually with cryptocurrencies like Bitcoin. 

Some Bitcoin held by American authorities was seized from James Zhong, who final 12 months pleaded responsible final 12 months to wire fraud.

Zhong manipulated the Silk Street transaction system in 2012 to steal 50,676 Bitcoins. Feds confiscated the stash in 2022, after BTC had rocketed upwards in value. It was one of many greatest Bitcoin seizures in historical past.

In response to Arkham, the massive stash of 19,800 Bitcoin moved Monday went to 2 totally different Coinbase wallets at a value of simply $3.34. 

Bitcoin’s value is now down by greater than 2% over a 24-hour interval, in accordance with CoinGecko. Its value presently stands at $95,250. 

When the federal government strikes massive quantities of Bitcoin, it could actually frighten buyers, who speculate that the cash could also be up on the market. However Coinbase Prime now has a contract with the U.S. authorities to handle and get rid of its digital belongings, which implies that a sale will not be imminent simply because Coinbase is concerned.

The U.S. authorities didn’t instantly reply to Decrypt’s questions, however has previously offered off seized Bitcoin.

President-elect Donald Trump has pledged to free Silk Street founder Ross Ulbricht upon taking workplace, after Ublricht has spent greater than 11 years behind bars.

“Immense gratitude to everybody who voted for President Trump on my behalf,” an official Ulbricht account on X (previously generally known as Twitter), run by his spouse, posted final month. “I belief him to honor his pledge and provides me a second probability.”

Edited by Andrew Hayward