According to Bitcoin Magazine, On-chain data showed a 0.001 BTC test from a $2 billion cache of about 30,174 BTC.
These funds are notoriously linked to the Silk Road marketplace, which was shut down by the FBI in 2013.
Test Transaction Indicates Potential $2 Billion Bitcoin Sale
The transaction was sent to Coinbase indicating a potential preparation for sale. Arkham Intelligence first pinpointed the origins and the intended destination of Bitcoin. This action matches past government sales of seized cryptocurrencies for US dollars.
JUST IN: 🇺🇸 US government sends over 30,170 #Bitcoin worth $2 billion to Coinbase using Silk Road hack funds, Arkham data shows 👀 pic.twitter.com/D9pcHzvJ8V
— Bitcoin Magazine (@BitcoinMagazine) April 2, 2024
The Silk Road, a dark web marketplace, operated from February 2011 to October 2013 before law enforcement shut it down. It was a platform for trading illegal items like drugs and counterfeit money using Bitcoin. The anonymity provided by the Bitcoin network was a critical feature that underpinned the operation of the Silk Road.
More About Silk Road’s Bitcoin
The test transaction to Coinbase can be seen as the government’s first step in converting the seized Bitcoin into fiat currency. This move has significant implications for the cryptocurrency market. A sale of $2 billion worth of Bitcoin could potentially impact Bitcoin’s price, depending on how it is executed. Market participants are closely watching the situation, speculating on the government’s next moves and the potential market reaction.
The US Government sold 2,000 Bitcoin today.
These Bitcoin had been seized from James Zhong (stolen from Silk Road).These Bitcoin went to Coinbase.
The US Government still holds 209K Bitcoin.
You can monitor the US Gov’s Bitcoin in this dashboard: https://t.co/ubPIErv9hg pic.twitter.com/o02WHM8Qb7
— Julio Moreno (@jjcmoreno) April 2, 2024
So, this development highlights the ongoing overlap between traditional regulations and the evolving cryptocurrency sector. Governments worldwide are still grappling with digital currency implications. These actions underscore the complex interplay between law enforcement, regulations, and cryptocurrency’s decentralized nature.
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