US Government Moves $600M in Silk Road Bitcoin to Coinbase
The US Government has moved nearly $600M in seized Bitcoin from Silk Road to a Coinbase wallet, according to Arkham Intelligence. The government holds millions of dollars worth of Bitcoin from various seizures over the years, including from the Silk Road dark web marketplace.
The amount of Bitcoin moved was 10,000, all to a Coinbase Prime wallet. The US Government moved nearly $2 billion in Bitcoin from Silk Road to another wallet in July 2024. The reasons behind the transaction are unknown, and analysts wonder if the government plans to sell or custody the BTC. In July, The U.S. Marshals Service (USMS) awarded Coinbase Prime a contract to manage and dispose of its large-cap cryptocurrency assets. Therefore, the U.S. government may just be moving the seized assets to a new place of custody.
What was Silk Road, and What is the US Government Doing With Its Bitcoin?
Silk Road was permanently shut down in 2013 after an FBI investigation. According to authorities, the site had enabled the unlawful sale of controlled substances, weapons, and other illegal merchandise. Its accused creator, Ulbricht, was convicted on charges of money laundering and operating a criminal business. U.S. officials have retained the Bitcoin stash since 2013 when an unidentified party entrusted it. In 2020, the Justice Department pursued civil forfeiture based on claims of unlawful ownership.
Furthermore, all eyes are now on what the US will do with its Bitcoin. The market had recently contended with Germany’s past selling of seized Bitcoin. Therefore, many are calling on the US to hold the asset. Among them is US Senator Cynthia Lummis.
Lummis is introducing legislation calling for Bitcoin to be used as a strategic reserve asset by the United States. The plan would call on the Treasury to hold BTC as a reserve asset, similar to how they would hold gold or foreign currency. Additionally, the move would allow Bitcoin to be sold to help combat the growing national debt.
Bitcoin is currently down in price in the last 24 hours, trading at $59,090.80. Over the past week though, the asset has recovered from a recent tumble, growing 7.24% in the last seven days.