$2 Billion Worth of Seized Silk Road Bitcoin Moved Ahead of Potential US Government Sale

Several blockchain analytics firms reported that a US government account holding nearly $2 billion worth of Bitcoin seized from the former dark web market Silk Road completed multiple transactions on Tuesday. The transfers are seen as a precursor to an expected liquidation of the assets by authorities.

The digital wallet, which initially contained 30,174 Bitcoin, sent around $65 in a test transaction to the deposit address of Coinbase Prime, the prime services unit of crypto exchange Coinbase. Arkham Intelligence said the test was followed by roughly $131 million in total transfers to Coinbase on Tuesday, with most funds moved between different government-associated addresses.

Parker Merritt from Coin Metrics analyzed the $65 transaction, telling Bloomberg that “The small amount is being sent to Coinbase Prime, while the large amount is being credited back to the US government as a ‘change output.’ Most likely, they will follow up by sending a larger (possibly the full) amount to Coinbase Prime, having confirmed the test transaction arrived.”

Flipside Crypto reported that after the test, several government addresses consolidated and shifted around 2,000 Bitcoin to Coinbase. Digital wallet addresses are typically anonymous.

Crypto markets have been monitoring the government’s Bitcoin holdings from the notorious Silk Road case closely. Any significant sales could impact Bitcoin’s price. Authorities have auctioned portions of the seized assets before. The recent transactions come as Bitcoin has surged over 50% in 2023 amid a broader rally in crypto prices.

The Silk Road website was shut down by federal agents in 2013 after it facilitated over $1.2 billion in illegal transactions and generated $80 million in commissions over less than three years. Its operator, Ross Ulbricht, is serving a life sentence.


Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Silver47 Completes Property-Wide Geochemical, Rock Sampling Program At Adams Plateau, Identifies Numerous Targets

Altamira Gold Identifies Presence Of Second Mineralized Porphyry Body At Cajueiro

Related News

Terra Blockchain Goes on Bitcoin Buying Spree to Diversify Reserves

The price of bitcoin is finally showing signs of a rebound, rising above $45,000 for...

Tuesday, April 5, 2022, 10:05:00 AM

Hut 8 Mining Partners With Validus Power To Develop Low Cost Bitcoin Mining Solutions

Hut 8 Mining (TSX: HUT) is looking for creative ways in which it can bring...

Monday, February 22, 2021, 07:45:44 AM

Hut 8 Mines 265 Bitcoin In November 2021

Hut 8 Mining Corp. (TSX: HUT) reported today its production results for the month of...

Thursday, December 2, 2021, 09:27:00 AM

Ready Your Bitcoin Wallets: Peter Schiff Is Willing To Sell EuroPac “For Anything”

Do you want to buy a bank? Peter Schiff will accept bitcoin payment for his...

Tuesday, July 12, 2022, 11:51:00 AM

Energy Giants Look To Move Into Cryptocurrency Space, Pressuring Miners

In late August 2020, international energy giant Equinor ASA (NYSE: EQNR) reportedly decided to partner...

Monday, September 28, 2020, 02:09:00 PM