US Govt. Moves $2B of Silk Road Bitcoin to Anonymous Address: Arkham

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Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk, Bitcoin Magazine and Bitcoin.com.

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July 29, 2024

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The U.S. government transferred 29,800 Bitcoin, valued at approximately $2 billion, to an anonymous address, according to Arkham Intelligence, a blockchain analytics firm.

The seized Bitcoin is associated with the Silk Road, a dark web marketplace that was infamous for facilitating illegal activities ranging from drug trafficking to money laundering.

Arkham, is a data firm tracking cryptocurrency movements and flagged the transfer raising questions and speculation regarding the intentions of the U.S. government in handling the seized Bitcoin.

On-chain sleuth Lookonchain notes the U.S. government currently holds 179,155 Bitcoin valued at $12.14 billion.

The #US Government transferred 29,800 $BTC($2.02B) to a new wallet 20 minutes ago.

The #US Government currently holds 179,155 $BTC($12.14B).https://t.co/erV5T8x6eUhttps://t.co/s8hA0nLaxB pic.twitter.com/aKYu8t7Ful

— Lookonchain (@lookonchain) July 29, 2024

US Govt. Seized 174K BTC From Silk Road Marketplace

The U.S. government seized a staggering 174,000 BTC from the Silk Road marketplace. This marks one of the largest seizures of crypto in history.

Silk Road, 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.

With the transfer of the Bitcoin to an anonymous address signifies a strategic move by the U.S. government in managing its crypto holdings.

There have been similar instances where the government has liquidated seized assets. Historically, the U.S. Marshals Service has conducted auctions of seized Bitcoin, providing opportunities for investors to purchase the cryptocurrency in bulk.

Bitcoin is trading at $66,600 on Tuesday at press time, down 3.8%. The movement of such a large amount of Bitcoin can influence market dynamics, potentially impacting the cryptocurrency’s price and liquidity.

Market participants are keenly observing any signs of further government action, which could include additional transfers or even sales.

US Govt. Sends Seized 3,940 BTC to Coinbase Prime Wallet

In June, the U.S. government seized 3,940 Bitcoins to a Coinbase prime wallet, according to Arkham Intelligence.

The data revealed that the Bitcoins were assets seized from Banmeet Singh, a convicted drug trafficker, who pled guilty of money laundering, early this year. The Bitcoins transferred are worth $241 million at press time.

Donald Trump Promises to Pardon Ross Ulbricht if Elected

Former US President Donald Trump has vowed to commute Silk Road creator Ross Ulbricht’s sentence if he is re-elected into the office. At the recent Bitcoin Conference in Nashville, Trum announced that he will pardon Ross on his first day in office. Ross has been in jail for the last 11 years.