Government moves seized Silk Road Bitcoin to Coinbase
The transaction involved 19,800 Bitcoin, which moved through an intermediary wallet to two Coinbase wallets, with a nominal transaction cost.
The US government has transferred nearly $2 billion worth of Bitcoin from its Silk Road seizure to Coinbase, according to blockchain analytics firm Arkham Intelligence. A total of 19,800 Bitcoin, initially moved to an intermediary wallet, were ultimately sent to two Coinbase wallets at a transaction cost of just $3.34.
Silk Road, a notorious dark web marketplace used for illegal transactions, was shut down in 2014. Some of the seized Bitcoin had been stolen by James Zhong, who exploited a vulnerability in 2012 to amass 50,676 BTC. Authorities confiscated his holdings in 2022, marking one of the largest Bitcoin seizures in history.
Bitcoin prices fell by over 2% following the news, now standing at $95,250. Market reactions often stem from fears of a potential sell-off when the government moves significant amounts of cryptocurrency. However, Coinbase Prime’s contract with the US Marshals Service to manage these assets suggests an immediate sale may not occur.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.
