Transfer to an anonymous address.
The seized bitcoins are linked to Silk Road, a notorious darknet marketplace that has facilitated illicit activities ranging from drug dealing to money laundering.
Arkham, a data firm that tracks cryptocurrency flows, flagged the transfer, raising questions and speculation about the U.S. government’s intentions about what to do with the seized bitcoins.
On-chain sleuth Lookonchain noted that the U.S. government currently holds 179,155 Bitcoins worth $12.14 billion.
US Government Seizes 174,000 Bitcoins from Silk Road Market
The US government has seized a staggering 174,000 Bitcoins from the Silk Road market, one of the largest cryptocurrency seizures in history.
Silk Road was operated by computer engineer Ross Ulbricht and was shut down by federal authorities in 2013. Ulbricht was convicted and sentenced to life in prison without parole.
The transfer of Bitcoin to an anonymous address marks a strategic move by the US government in managing its cryptocurrency assets.
The government has liquidated seized assets in similar cases. The US Marshals Service has auctioned seized Bitcoins several times in history, providing investors with opportunities to buy cryptocurrencies in bulk.
As of press time, Bitcoin was trading at $66,600 on Tuesday, down 3.8%. Such a large-scale transfer of Bitcoin could affect market dynamics, potentially affecting the price and liquidity of cryptocurrencies.
Market participants are closely watching for any further signs of government action, which could include additional transfers or even sales.
The U.S. government sent 3,940 seized bitcoins to a Coinbase Prime wallet
According to a report by Arkham Intelligence, in June this year, the U.S. government sent 3,940 bitcoins to a Coinbase Prime wallet.
Data shows that the bitcoins were seized from convicted drug dealer Banmeet Singh, who pleaded guilty to money laundering earlier this year. As of press time, the transferred bitcoins are worth $241 million.
Trump promises to pardon Ulbricht after election
Former U.S. President Donald Trump vowed to commute the sentence of Silk Road founder Ross Ulbricht if he is re-elected president. At a recent Bitcoin conference in Nashville, Trump announced that he would pardon Ross on his first day in office. Ross has spent 11 years in prison.
