U.S. authorities moved $2 billion in Silk Road Bitcoin to Coinbase.
James Zhong’s 2012 theft of Bitcoin led to the government seizure in 2022.
The U.S. Marshals Service has a contract with Coinbase Prime for asset management.
On Monday, U.S. authorities transferred $2 billion worth of Bitcoin from the notorious Silk Road marketplace to Coinbase. Blockchain data reveals the movement of over 19,800 Bitcoin, some of which had been seized from James Zhong, who pleaded guilty to wire fraud after stealing 50,676 Bitcoin from Silk Road in 2012.
The U.S. government confiscated this significant stash in 2022, after Bitcoin prices had skyrocketed. As one of the largest Bitcoin seizures in history, this latest transfer adds another layer of intrigue to the government's involvement with cryptocurrency.
https://twitter.com/arkham/status/1863623883422679160
The Bitcoin was sent to two Coinbase wallets, with a minimal transaction fee of just $3.34, as blockchain intelligence firm Arkham reported.
This action has triggered speculations in the cryptocurrency market. Large-scale transfers like this often prompt concerns that the government might be planning to sell off the seized assets.
However, the U.S. Marshals Service, part of the Department of Justice, now has a contract with Coinbase Prime to handle and dispose of digital assets. This agreement may suggest that a sale is not imminent despite Coinbase's involvement.
The U.S. government has previously auctioned off seized Bitcoin, though no official statements have been made regarding future plans for this particular stash. Additionally, the high-profile case involving Silk Road's founder, Ross Ulbricht, continues to attract attention.
Ulbricht, who has spent over 11 years in prison, has received support from President-elect Donald Trump, who has pledged to seek his release once in office.
This move marks yet another chapter in the government's ongoing handling of digital assets, especially those tied to criminal activities like Silk Road. The vast sums involved reflect Bitcoin's growing influence in the global financial system and highlight the complexities surrounding its regulation.
