US government moves 30,175 Bitcoin confiscated from Silk Road to Coinbase

On April 2nd, the United States government initiated a transaction of 30,175 Bitcoin (BTC), worth roughly $2 billion, from a wallet associated with the crypto exchange Coinbase. The move occurred during a significant downturn in the Bitcoin market, raising questions about the government's intentions for its digital asset holdings.

The US government transferred 30,175 Bitcoin (BTC), approximately worth $2 billion, to a wallet linked to crypto exchange Coinbase on April 2.

The move occurred amid a major dip in Bitcoin that took its price to a weekly low of $64,500 per BTC before bouncing above the key $65,000 support level.

On-chain sleuth ZachXBT drew attention to the initial test transaction on social media.

Coinbase transfer

The transfer has drawn significant attention from the crypto community and raised questions about the government’s plans for its digital asset holdings.

The initial transaction included a test transfer of 0.001 BTC ($69) to a Coinbase address, suggesting meticulous planning. The transaction hash:

“9c3af4b48e66565f1da1da8278036fa1dbb09f2beaaca99c3504475390ba4590”

Coinbase deposit address:

“3KrZVU9Jz4UKHpKUtuvkEMX1tY8zeiTvX2.”

Following the announcement of this transfer, Bitcoin’s value dipped below $65,000 but slightly recovered to above now trading at $65,200, down by 4.7% in the last 24 hours. This movement mirrors the broader market downturn, with the CoinDesk 20 Index also falling by 4.7%.

Silkroad Bitcoin

The transferred Bitcoins come from a batch of approximately 50,000 BTC that the US government seized in late 2022, associated with the Silk Road website, a dark web marketplace the FBI shut down in 2013.

Blockchain analysis firm Arkham Intelligence has identified the receiving wallet as part of Coinbase, hinting at a possible preparation for sale or exchange by the government. The last major sale the government publicly reported was in March 2023 — when it sold 9,861 BTC for about $216 million.

The crypto community is closely monitoring the effects of this substantial transfer, speculating on the US government’s strategy for its remaining Bitcoin holdings. It is unclear whether the BTC will be sold immediately or slowly over time.

The US previously filed to sell roughly $130 million worth of the seized BTC in January. However, the sale was not confirmed publicly.

The development may influence investor sentiment and trigger discussions on the management and sale of seized digital assets, considering its potential impact on the digital assets market.