Bitcoin-gID_7.png@png” />
In summary
- US authorities moved $1.92 billion in seized Bitcoin from Silk Road to Coinbase, according to Blockchain data.
- The seized Bitcoin comes from Silk Road and was stolen in 2012 by James Zhong, who pleaded guilty to fraud.
- Although the government moved large amounts of Bitcoin, an imminent sale is not expected as Coinbase manages these digital assets.
US federal authorities moved almost $2 billion in seized Bitcoin from the dark web marketplace Silk Road to Coinbase on Monday, blockchain data shows.
Arkham Intelligence pointed out the transactions carried out by the United States government. He indicated that the Bitcoin came from Silk Road, and was eventually moved to the largest US Cryptocurrency exchange after a brief stop at another Bitcoin wallet. In total, 19,800 BTC were transferred—equivalent to $1.92 billion.
Federal authorities shut down Silk Road in 2014. The platform was widely used to buy illegal drugs and services—often with cryptocurrencies like Bitcoin.
Some of the Bitcoin in the possession of US authorities was seized from James Zhong, who pleaded guilty last year to wire fraud.
Zhong manipulated the Silk Road transaction system in 2012 to steal 50,676 BTC. Authorities confiscated the stash in 2022, after the price of BTC skyrocketed. It was one of the largest Bitcoin seizures in history.
According to Arkham, the huge stash of 19,800 Bitcoin moved on Monday went to two different Coinbase wallets at a price of just $3.34.
The price of Bitcoin is now down more than 2% in a 24-hour period, according to CoinGecko. Its price currently stands at $95,250.
When the government moves large amounts of Bitcoin, it can scare investors, who speculate that the coins could be for sale. But Coinbase Prime now has a contract with the US Marshals Service (part of the Department of Justice) to manage and dispose of its digital assets, meaning a sale might not be imminent just because Coinbase is involved.
The US Department of Justice did not immediately respond to questions from Decrypt. Although in the past the government has sold seized Bitcoin.
President-elect Donald Trump has pledged to free Silk Road founder Ross Ulbricht upon taking office, after Ulbricht spent more than 11 years behind bars.
“Immensely grateful to everyone who voted for President Trump on my behalf,” an official Ulbricht account on X (formerly known as Twitter), run by his wife, posted last month. “I trust that he will honor his promise and give me a second chance.”
Edited by Andrew Hayward
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
Disclaimer: Please note that the information provided on this page is for News purposes only and should not be considered investment or trading advice. ©Crypto.keynoteusa.com strongly recommends that you conduct independent research and/or consult with a qualified professional before making any investment decisions.
