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

The feds on Monday moved practically $2 billion of seized Bitcoin from shuttered darkish net market Silk Highway to Coinbase, blockchain knowledge exhibits. 

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

Feds shut down the Silk Highway on-line black market again in 2014. The platform was extensively used to purchase unlawful medication and companies—typically 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 Highway transaction system in 2012 to steal 50,676 Bitcoins. Feds confiscated the stash in 2022, after BTC had rocketed upwards in worth. It was one of many largest Bitcoin seizures in historical past.

Based on Arkham, the massive stash of 19,800 Bitcoin moved Monday went to 2 completely different Coinbase wallets at a price of simply $3.34. 

Bitcoin’s worth is now down by greater than 2% over a 24-hour interval, in response to CoinGecko. Its worth at present stands at $95,250. 

When the federal government strikes massive quantities of Bitcoin, it will possibly 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 eliminate its digital property, which signifies 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 prior to now bought off seized Bitcoin.

President-elect Donald Trump has pledged to free Silk Highway 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 often called 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