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The United States Government has moved $30,175 Bitcoin, worth $2.1 billion, that was seized from Silk Road to cryptocurrency exchange Coinbase.
The transfer comes at a time when the price of Bitcoin has seen a substantial decrease, with the weekly low at $64,500. Currently, the cryptocurrency is trading 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.
“JUST IN: US Government transfers 30,174 #Bitcoin worth $2.1 billion seized from Silk Road to Coinbase.”
The government initiated the transaction with a test transfer of 0.001 BTC to the Coinbase wallet address. The transaction hash and the Coinbase wallet deposit address are also public, indicating the openness with which the government is conducting the transactions. The government’s action has resulted in considerable speculation within the cryptocurrency regarding what the government plans to do with the digital assets it currently holds.
Bitcoin Wobbles
Following the announcement, the price of Bitcoin saw a marginal decline, going below the $65,000 mark before making a slight recovery. Currently, it is trading at $66,300, down by just over 1% over the past 24 hours. Blockchain analysis firm Arkham Intelligence highlighted that the recipient wallet belonged to Coinbase. This indicated a potential government-backed move to sell or exchange the confiscated Bitcoin.
The move has also stirred intense discussions within the crypto community regarding the control and disposal of seized digital assets, such as those from Silk Road. The potential sale of the seized Bitcoin could significantly impact the markets and bring down the price of Bitcoin. Many expect the price of Bitcoin to increase substantially with the upcoming halving event later this month.
Previous Sale
The United States government had previously planned to sell $130 million worth of Bitcoin, also seized from the infamous Silk Road marketplace, after filing a notice to sell issued from the United States District Court for the District of Maryland. The notice of the impending sale came after a court-approved forfeiture of 69,000 BTC connected with the Silk Road marketplace. The sale will see the government sell two lots of Bitcoin, with one lot of 2874.9 BTC, valued at $129 million, and a second lot of 58.7 BTC, valued at $3.3 million. The government’s last confirmed sale of Bitcoin was in March 2023, when it sold around 9861 BTC for $216 million.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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