Home U.S. Government moves $2 billion in seized Bitcoin from Silk Road

U.S. Government moves $2 billion in seized Bitcoin from Silk Road

TL:DR

  • U.S. government wallet moves 30,175 BTC, valued at $2 billion.
  • Coins from Silk Road case; previous sale in March 2023: 9,861 BTC for $216M.
  • 2,000 BTC sent to Coinbase and the rest to a government wallet.

In a significant development, a wallet tagged as belonging to the U.S. government transferred 30,175 Bitcoin (BTC) on Tuesday morning. With the current price of Bitcoin hovering around $65,000, the total value of the moved coins is estimated to be roughly $2 billion.

This move comes after the government’s last confirmed sale in March 2023, when it sold 9,861 bitcoins for $216 million. The bitcoins in question were part of the approximately 50,000 coins seized by the government in late 2022, related to the infamous Silk Road website.

According to blockchain analytics firm Arkham Intelligence, 2,000 of the moved Bitcoin were transferred to a wallet belonging to the crypto exchange Coinbase (COIN), while the remaining coins were sent to a wallet identified as belonging to the government.

The news of this substantial Bitcoin movement had an immediate impact on the cryptocurrency market. Bitcoin, which was already experiencing a downward trend, dipped further below $65,000 following the announcement.

However, it has since slightly recovered and is currently trading at $65,200, marking a 4.7% decrease over the past 24 hours. The events follow Bitcoin recently soaring past $71,000 for the first time in history, shortly after United Kingdom’s Financial Conduct Authority approved cryptocurrency exchange-traded notes for trading.

A setback after a major rise

This recent upwards trend in Bitcoin’s price follows the U.S.’s approval of spot Bitcoin spot exchange-traded funds (ETFs) back in January, propelling the cryptocurrency to breach the $70,000 mark last week for the first time. Similarly, Ethereum (ETH) surpassed the $4,000 milestone on Monday. Now companies are looking to do the same with Ethereum.

At the end of March, Nasdaq-traded spot Bitcoin (BTC) exchange-traded funds (ETFs) witnessed an inflow of $15.4 million, marking a positive shift after five consecutive days of outflows, according to preliminary figures from investment company Farside.

The previous week was challenging for these ETFs, with a total outflow of $887.6 million, primarily due to significant withdrawals from GBTC.

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Radek Zielinski
Tech Journalist

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.