The U.S. government has transferred 29,800 Bitcoins worth about $2 billion to an anonymous address, according to Arkham Intelligence, a blockchain analytics firm. The seized Bitcoins are linked to Silk Road, a dark web marketplace that has become infamous for facilitating illegal activities ranging from drug trafficking to money laundering.
Arkham is a data company that tracks cryptocurrency movements and has flagged the transfer, raising questions and speculation about the U.S. government’s intentions in handling the seized Bitcoin. On-chain detective Lookonchain notes that the US government currently holds 179,155 Bitcoin worth $12.14 billion.
The US government has confiscated a staggering 174,000 BTC from Silk Road Marketplace. This is one of the largest cryptocurrency seizures in history. Silk Road, operated by computer engineer Ross Ulbricht, was shut down by federal authorities in 2013. Ulbricht was sentenced to life in prison without the possibility of parole.
The transfer of Bitcoin to an anonymous address marks a strategic move by the US government in managing its cryptocurrency holdings.
There have been similar cases in which the government liquidated confiscated assets. Historically, the U.S. Marshals Service has held auctions of confiscated Bitcoin, providing investors with the opportunity to purchase cryptocurrency in bulk.
Bitcoin is trading at $66,600 at the time of publication Tuesday, down 3.8%. The movement of such a large amount of Bitcoin could affect market dynamics, potentially impacting the price and liquidity of the cryptocurrency.
Market participants are watching closely for any signs of further government action, which could include additional transfers or even sales.
US government sends confiscated 3940 BTC to Coinbase Prime wallet
According to Arkham Intelligence, in June the US government confiscated 3940 Bitcoins to the Coinbase Prime wallet . The data revealed that the Bitcoins were assets confiscated from Banmeet Singh, a convicted drug trafficker who pleaded guilty to money laundering earlier this year. The transferred Bitcoins are worth $241 million at this point.
Former US President Donald Trump has promised to commute the sentence of Silk Road creator Ross Ulbricht if he is re-elected to office. At a recent Bitcoin conference in Nashville, Trum announced that he would pardon Ross on his first day in office. Ross has been in prison for 11 years.
