Feds Move Bitcoin From Seized Silk Road Wallet Holding $2 Billion in Funds - Decrypt

The United States Department of Justice has initiated the transfer of a significant portion of its $2 billion Bitcoin (BTC) holdings. The funds have been moved to an address associated with cryptocurrency exchange Coinbase, as detected by blockchain data analyzed by ZachXBT and Arkham Intelligence. The movement of approximately 2,000 BTC (valued at $131.27 million) followed a small test transaction of 0.001 BTC.

The feds are moving their Bitcoin stash again. 

Blockchain data shows that on Tuesday morning, a wallet tagged as belonging to the United States Department of Justice started moving some of the $2 billion worth of held BTC to an address believed to be crypto exchange Coinbase. 

Pseudonymous blockchain analyst ZachXBT said on Twitter/X that the funds were moved to a Coinbase deposit address. A small test transaction of 0.001 BTC (about $69) was sent before approximately 2,000 BTC ($131.27 million) followed.

Arkham Intelligence, which tracks blockchain data, has a U.S. government-labeled address on its platform. It shows that the funds were moved to Coinbase Prime. The majority of the $2 billion in Bitcoin remains "unspent" as of this writing according to transaction data, however.

The feds hold Bitcoin that’s been seized from criminals and sometimes move it around. Sometimes they intend to sell it. 

Back in November 2021, authorities seized $3.36 billion worth BTC after hacker James Zhong confessed to stealing digital assets from the illegal Silk Road marketplace—where people could use crypto to buy drugs and other illicit goods.

Bitcoiners tend to keep an eye on big and well-known BTC holders when they move large amounts of funds. Previous movements—or even suspected movements—have sent the price of the Bitcoin downwards because observers expect it to be sold.

Edited by Andrew Hayward