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U.S. government moves $300 million in Bitcoin seized from Silk Road

TL;DR

  • The U.S. government, linked to the Silk Road seizure, transferred over $300 million in Bitcoin, causing a brief dip in Bitcoin’s price.
  • These funds likely come from the largest-ever U.S. government crypto seizure in November 2021, totaling $3.36 billion from the Silk Road marketplace.
  • The U.S. government has been gradually selling its seized Bitcoin, with significant transactions impacting Bitcoin’s price, highlighting the interconnectedness of the crypto market.

Two wallets linked to the U.S. government, associated with the infamous Silk Road seizure, have caught the attention of crypto watchers as they shuffled around over $300 million in Bitcoin across three transactions on Wednesday. Notably, Bitcoin’s price fell to $30,480 following the transactions.

According to on-chain data, the government-controlled wallets conducted transactions involving a total of 9,825 Bitcoin, equivalent to $301 million. This move recalls a similar transaction in March, where over $1 billion in Bitcoin was transferred, leading to a temporary drop in major cryptocurrencies.

Silk Road’s ghost lingers in crypto markets

The $300 million shuffling probably stems from the U.S. government’s largest-ever crypto seizure. Back in November 2021, the Department of Justice laid its hands on a staggering $3.36 billion in Bitcoin, which hacker James Zhong had unlawfully appropriated from the Silk Road marketplace. The cryptocurrency haul was seized after Zhong’s confession, ending a decade-long saga that started when Zhong exploited the Silk Road’s transaction system to abscond with 50,676 Bitcoins back in 2012.

Since the monumental seizure, the government has been gradually liquidating its Bitcoin holdings, selling $215 million worth of the digital asset in March alone, with plans of divesting another $1.1 billion. Tracking the government’s crypto movements is akin to monitoring a ticking time bomb, as significant transactions have often sent shockwaves across the crypto landscape, influencing Bitcoin’s price trajectory.

At the time of writing, the cryptocurrency is trading for $30,343 per coin, experiencing a 0.59% decrease in the last 24 hours.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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