Seized Bitcoin Worth $2 Billion Was Moved Ahead of a Potential US Government Sale
A US government account that was holding roughly $2 billion worth of Bitcoin that was taken from the former dark web marketplace Silk Road completed several transactions on Tuesday, according to several blockchain analytics companies. The transactions are thought to be a prelude to the authorities’ anticipated asset liquidation.
The digital wallet, which initially had 30,174 Bitcoin, transmitted roughly $65 in a test transaction to the deposit address of Coinbase Prime, the prime services section of crypto exchange Coinbase. According to Arkham Intelligence, Tuesday’s test was followed by transfers totaling over $131 million to Coinbase, the majority of which were sent between several addresses connected to the government.
After analyzing the $65 transaction, Parker Merritt of Coin Metrics told Bloomberg, “The large amount is being credited back to the US government as a ‘change output,’ while the small amount is being sent to Coinbase Prime.” After confirming the test transaction arrived, they will probably send Coinbase Prime a greater amount—possibly the entire amount.
According to Flipside Crypto, following the test, a number of government addresses pooled their funds and moved about 2,000 Bitcoin to Coinbase. Typically, digital wallet addresses are anonymous.
The government’s Bitcoin holdings from the infamous Silk Road case have been eagerly watched by cryptocurrency markets. The price of bitcoin might be impacted by any sizable sales. Authorities had previously put some of the seized property up for sale.
The latest transactions coincide with a larger upswing in cryptocurrency pricing, which has seen Bitcoin rise by almost 50% in 2023.
After facilitating over $1.2 billion in illicit transactions and earning $80 million in profits in less than three years, federal officials shut down the Silk Road website in 2013. Ross Ulbricht, who runs it, is incarcerated for life.