The US government has transferred $2 billion in Bitcoin seized from the Silk Road to new addresses, according to Arkham Intelligence’s on-chain data. This action follows former President Donald Trump’s plan to halt the sale of government-held Bitcoin if he returns to office. On July 29, Arkham Intelligence revealed that around 28,000 BTC were moved from the Silk Road DOJ Confiscated Funds to new addresses. This transfer has sparked significant interest and debate in the crypto community.
Initially, the Bitcoins were sent to the address 'bc1qs' and then split between two new addresses. One received 10,000 BTC, worth $669.35 million, and the other got 19,800 BTC, valued at $1.33 billion. Arkham suggested the first address might be an institutional custody service. Despite this move, the US government still holds over $12 billion in Bitcoin.
The timing of this transaction is crucial, occurring just two days after Trump announced his plan to prevent the sale of government Bitcoin if he regains office. This has led to speculation about the government's strategic use of Bitcoin.
Tyler Winklevoss, co-founder of Gemini, pointed out the timing on Twitter. He noted the contrast between Trump's pledge and the Biden administration's action. Galaxy Digital CEO Mike Novogratz criticized the timing, calling it "tone deaf". He remarked that moving the Bitcoin so soon after Trump’s announcement seemed unwise.
Economist Peter Schiff suggested that Trump's announcement may have prompted the current administration to act quickly. He speculated that if Trump intended to use Bitcoin as a strategic reserve, he should have kept his plans secret until taking office. In April, a government wallet transferred nearly 2,000 BTC to a Coinbase Prime hot wallet. The US Marshals Service, which manages and sells seized assets, also recently paid Coinbase $32.5 million for custodial services.
This large Bitcoin transfer by the US government has led to various reactions and speculations. The significant amount and the timing of the transfer have prompted questions about the government's strategy and future plans for these digital assets. As the situation develops, the crypto community will be closely watching to understand the implications of these moves.
