In 2021 and 2022, the US government transferred Bitcoin (BTC) worth $1 billion, recovered from the anonymous darknet marketplace Silk Road.
PeckShield, a blockchain security startup, tweeted on March 8 that 49,000 BTC migrated from government wallet addresses, with about 10,000 BTC going to the world’s largest cryptocurrency exchange Coinbase. The BTC is part of those seized in 2021 and 2022.
In November 2021 and March 2022, the United States authorities seized about 51,351,9 BTC in Silk Road revenues. Until recently, according to PeckShield, the Bitcoins were stored at two government addresses. The BTC was valued at around $3.39 billion at the moment.
Glassnode, another reputable crypto market information tool, has also seen an odd BTC movement. Most transactions were internal, with nearly 10,000 BTC going to Coinbase. According to Glassnode, a total of 40,000 BTC were transferred by government authorities.
Silk Road was a unique black market website known for its money laundering operations. Established by Ross Ulbricht in 2011, US officials shut it down in 2013 on suspicion of unlawful activity. The Bitcoin was seized and tracked back to Ulbricht, who is serving a life sentence for the crime.
Silk Road was one of the first websites to take Bitcoin. Since it became recognized as a platform for money laundering, Bitcoin and cryptocurrencies have had a complex image with the authorities.
During significant BTC swings like these, there is a concern that the asset’s price may drop drastically if Bitcoin is sent to an exchange.
While the Bitcoin price fell from $22,469 to $22,000 after the occurrence, only roughly 10,000 BTC ($217 million) were sent to Coinbase and likely sold. Because not all 49,000 BTC were traded, this shouldn’t cause any worry.
The Bitcoin price is $22,059. Nevertheless, a panic sell-off might ensue if the remaining 39,000 BTC is transferred to Coinbase or any other exchange.
