On-chain data shows that a portion of Bitcoin seized by the U.S. government in the dark web market case 'Silk Road' was transferred to Coinbase Prime early this morning (3rd), amounting to 19,800 coins worth nearly $2 billion. After the news broke, it sparked a lot of speculation in the market, fearing that these Bitcoins would be sold off.
According to data tracked by blockchain analysis company Arkham Intelligence, an address labeled 'U.S. Government: Silk Road DOJ Seized Funds' transferred 19,800 Bitcoins to a new wallet early this morning, which were subsequently deposited into Coinbase Prime.
This move is interpreted by the market as the U.S. government possibly preparing to sell this batch of assets or having completed part of the monetization. In the past, when the U.S. government has sold Bitcoin, it often triggered significant market volatility, but after this news was announced, the Bitcoin price only slightly declined by 1%, currently around $95,900.
According to Arkham data, the U.S. government currently still holds 198,000 Bitcoins, valued at approximately $19 billion.
In July of this year, the U.S. Department of Justice (DOJ) announced a partnership with Coinbase Prime through the U.S. Marshals Service, which is responsible for managing criminal assets, to 'protect and trade' high-value digital assets.
The U.S. government has seized over 200,000 Bitcoins from suspects over the years, making it one of the recognized 'Bitcoin whales' in the crypto community. Due to the potential impact of large sales on cryptocurrency prices, the government's movements regarding Bitcoin transfers have always been a focal point of market attention.
According to court documents, the most recent verifiable sale of Silk Road assets by the U.S. government was in March 2023, when 9,861 Bitcoins were sold for $216 million. Additionally, in January of this year, an announcement was made to sell 2,933 Bitcoins seized from the Silk Road case, but no further updates have been provided since.
"The U.S. government transfers nearly $2 billion in Bitcoin, raising market concerns about sell-off risks" This article was first published on (Blockke).
