US Govt Moves $2.1B Worth Of Seized Bitcoin To Coinbase

The US authorities transferred Bitcoin valued at approximately $2.1 billion, which they had confiscated from the Silk Road platform, to the digital currency exchange, Coinbase.

At the moment, the Bitcoin transfer takes place as the cryptocurrency’s price experiences a significant drop. The lowest point in the past week was $64,500. Presently, Bitcoin is being traded at $66,300.

US Government Makes Historic Transfer 

The transfer of the 30,175 seized Bitcoin was brought to the crypto community’s attention by on-chain detective ZachXBT. The crypto detective was the first to highlight it on social media, calling it a significant event for the crypto space. The US government has not yet commented or confirmed the transaction. The last time it made a substantial transfer and sale of Bitcoin was in March 2023. This was when the government sold 9861 BTC for $216 million. The current sale would be significantly larger than any previously held sale if confirmed. 

“Breaking News: The US government has moved $2.1 billion worth of seized #Bitcoin, equivalent to 30,174 coins, into Coinbase from the Silk Road case.”

The government began the process of transferring 0.001 BTC as a trial transaction to Coinbase’s wallet, making the transaction hash and deposit address available to the public. This transparency demonstrates the government’s open approach to handling its digital assets. The announcement has sparked much debate within the cryptocurrency community about the potential intentions of the government regarding their current Bitcoin holdings.

Bitcoin Wobbles 

After the announcement was made, Bitcoin’s price dipped slightly and fell under $65,000. However, it later rebounded slightly and is now being traded at around $66,300. This represents a drop of approximately 1% in the past 24 hours. Notably, data from blockchain analysis firm Arkham Intelligence suggests that a wallet linked to the transaction in question belongs to Coinbase. Such findings raise speculation about possible government intervention involving the sale or exchange of seized Bitcoins.

Within the crypto world, the recent action has sparked heated debates: how to manage and sell confiscated digital currencies like those linked to Silk Road? The decision to sell the seized Bitcoins could influence market trends and potentially decrease Bitcoin’s value. However, some anticipate a substantial price hike due to the upcoming halving event this month.

Previous Sale 

Previously, the US authorities announced their intention to auction off $130 million worth of Bitcoins, seized from the notorious Silk Road marketplace, following a court order permitting the forfeiture of approximately 69,000 BTC related to the marketplace. The planned sale includes two separate lots: the first lot consisting of 2,874.9 BTC, valued at around $129 million, and the second lot containing 58.7 BTC, worth roughly $3.3 million. This marks the US government’s latest Bitcoin sale since March 2023, when they disposed of approximately 9,861 BTC for a total value of $216 million.

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2024-04-03 11:05