US authorities transferred $2 billion in Bitcoin from Silk Road to Coinbase
Blockchain data indicates that approximately $2 billion in Bitcoin previously seized by US authorities and associated with the Silk Road market has been moved to a new address.
On April 2, an address associated with the US Department of Justice made a 0.001 BTC transaction to a Coinbase Prime address, possibly as a test. Immediately after this, the same wallet sent 30,174 BTC, or approximately $2 billion at the time of publication, to the new address. Online researchers determined that this DOJ wallet contained bitcoins seized from James Zhong, who was convicted in 2022 of Silk Road-related crimes, including “illegally obtaining” cryptocurrency. Experts allowed the sale of assets.
On April 2, an address associated with the US Department of Justice made a 0.001 BTC transaction to a Coinbase Prime address, possibly as a test. Immediately after this, the same wallet sent 30,174 BTC, or approximately $2 billion at the time of publication, to the new address. Online researchers determined that this DOJ wallet contained bitcoins seized from James Zhong, who was convicted in 2022 of Silk Road-related crimes, including “illegally obtaining” cryptocurrency. Experts allowed the sale of assets.
Source: transaction analytics block of our solution Btrace
In 2012, Zhong stole more than 50,000 BTC from Silk Road. In 2021, US authorities raided his property and found hard wallets containing Bitcoin, including one located “on a single-board computer that was hidden under blankets in a popcorn can.”
The bulk of the seized cryptocurrency was sent to the same address to which more than 30,000 BTC were transferred on April 2.
In March 2023, US government authorities reported the sale of approximately 9,861 BTC seized from Zhong, worth more than $215 million. After this sale, approximately 40,000 BTC remained. The April 2 transaction came after the price of Bitcoin fell more than 7% to $65,475.
In March 2023, US government authorities reported the sale of approximately 9,861 BTC seized from Zhong, worth more than $215 million. After this sale, approximately 40,000 BTC remained. The April 2 transaction came after the price of Bitcoin fell more than 7% to $65,475.
Silk Road, which went defunct more than 10 years ago, was a platform where users could buy and sell illegal goods, including guns, drugs and stolen credit card information. The creator of this platform, Ross Ulbricht, was arrested in 2013 by American authorities. He is currently serving two life sentences without the possibility of parole.
How the crypto market reacted
Bitcoin traders ignore US government's massive Silk Road token sale as BTC price jumps to $66.5k.
BTC/USD hourly chart. Source: TradingView
Data from TradingView showed a slight recovery in BTC prices from lows around $64,500 after the close of the day. This happened even against the backdrop of news about such a large token sale. While this appeared to rattle an already nervous market, traders were quick to call for calm.
Some traders are “happy” that more BTC supply is now available. Others emphasized the insignificance of the amount sold.
Some traders are “happy” that more BTC supply is now available. Others emphasized the insignificance of the amount sold.
Our company reminds you that you need to check your cryptocurrency addresses - it is unlikely that anyone other than the governments of various countries will approve the transfer of tokens from the derknet market to a centralized exchange.
Well, check your crypto wallet for cleanliness, perform AML address verification, track the transaction - this and more you can do in our solution Btrace. Free AML wallet verification for every new user.
Well, check your crypto wallet for cleanliness, perform AML address verification, track the transaction - this and more you can do in our solution Btrace. Free AML wallet verification for every new user.
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