Seized Silk Road Bitcoin Moved to Coinbase Prime by US Government
YEREVAN (CoinChapter.com) — On Wednesday, the US government transferred 10,000 bitcoin (BTC) seized from the Silk Road case, valued at approximately $600 million, to Coinbase Prime. Arkham Intelligence, a blockchain analysis firm, identified the transfer. The crypto wallet involved had received the bitcoin two weeks earlier from a wallet tagged as “U.S. Government: Silk Road DOJ Confiscated Funds.”
Silk Road Bitcoin Transfer to Coinbase Prime. Source: Arkham Intelligence DOJ’s $3.36B Silk Road BTC Seizure and 2023 Asset Sales Overview
In 2022, the Department of Justice (DOJ) seized over 50,000 BTC after arresting James Zhong, who pleaded guilty to wire fraud. Zhong was accused of exploiting Silk Road’s transaction system in 2012.
Historic $3.36B Silk Road Bitcoin Seizure by U.S. DOJ. Source: U.S. Attorney’s Office, Southern District of New York
The government last sold seized Silk Road-linked bitcoin in March 2023, unloading 9,861 BTC for $216 million, according to court records. Plans were made to sell the remaining assets in four tranches, but there have been no updates since.
Government’s $12B BTC Stash and Market Response
Bitcoin’s price dropped to $59,000 from $61,000 earlier on Wednesday, though this occurred before news of the transfer emerged. The price change suggests uncertainty about the market’s response. Wallets linked to the U.S. government currently hold around $12 billion worth of BTC, along with smaller amounts of other cryptocurrencies, as per Arkham Intelligence.
U.S. Government’s $12.24 Billion Crypto Holdings Breakdown. Source: Arkham Intelligence
At the moment of writing, Bitcoin (BTC) is priced at $58,310.65, reflecting a 1.83% increase over the past 7 days. The cryptocurrency’s market capitalization stands at approximately $1.15 trillion, having decreased by 4.26%. The 24-hour trading volume has surged by 14.57% to reach $32.92 billion. Currently, the volume-to-market cap ratio is 2.86%. The circulating supply of Bitcoin is 19,739,978 BTC, which represents 94.00% of its maximum supply of 21 million BTC.
Bitcoin Holds Steady at $58.3K Amidst Market Volatility. Source: CoinMarketCap
The U.S. Marshals Service, a division of the DOJ, partnered with Coinbase Prime last month to “safeguard and trade” large-cap digital assets. The details of what happens to the bitcoin after the transfer to Coinbase Prime remain unclear.
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