U.S. government transfers 19,000 Bitcoins worth $2 billion to Coinbase

The U.S. government has transferred 19,800 Bitcoins worth approximately $2 billion to Coinbase Prime. This stash, seized from the infamous Silk Road marketplace, was part of the government’s long-running effort to liquidate confiscated crypto assets.

The funds, initially moved to a new wallet with zero transaction history, were later deposited to Coinbase Prime, the go-to platform for institutional crypto trading. Speculation is rife that this signals an impending sale.

Historically, such government sales have triggered selloffs in the market. But Bitcoin prices have remained relatively stable this time, dipping to just over 1.6% to around $95,580 as of press time.

Though Julio Moreno, Head of Research at CryptoQuant, believes:

It is highly likely that only 9,999.99 Bitcoin were sold, as these were sent to Coinbase Prime. The other 9,799.99 Bitcoin are in a newly created address.

Silk Road, James Zhong, and the massive Bitcoin haul

Back in 2022, the Department of Justice (DOJ) seized over 50,000 bitcoins tied to the Silk Road marketplace. James Zhong, who orchestrated the heist in 2012, was arrested and later pleaded guilty to wire fraud.

The DOJ accused Zhong of exploiting vulnerabilities in Silk Road’s transaction system to siphon off the assets. The seizure, valued at $3.36 billion at the time, is one of the largest crypto recoveries ever.

Court filings show that the government sold a portion of these assets in March 2023, offloading 9,861 bitcoins for $216 million. The DOJ had planned to liquidate the remaining holdings in four tranches over the year, but updates on further sales have been scarce.

Last month, a Northern California district court authorized the government to liquidate these assets while resolving a Freedom of Information Act (FOIA) request tied to the case.

The government’s collaboration with Coinbase Prime is another part of this saga. Earlier this year, the U.S. Marshals Service, a DOJ division, partnered with Coinbase Prime to manage and trade confiscated digital assets.

This partnership has likely streamlined the liquidation process, as Coinbase Prime specializes in handling large-scale institutional transactions.

MicroStrategy keeps stacking

But as the U.S. government liquidates, MicroStrategy continues to aggressively accumulate. The Virginia-based company, led by Bitcoin maxi Michael Saylor, added 15,400 bitcoins to its holdings just moments before America’s transfer.

It spent $1.5 billion between November 25 and December 1. This brings MicroStrategy’s total stash to a staggering $38 billion.

An SEC filing reveals that MicroStrategy has spent $13.5 billion on Bitcoin purchases since November 11 alone. Saylor’s strategy of turning the company into a “Bitcoin Treasury” has paid off, with the firm’s stock soaring over 500% this year.

Unlike the government, which seems eager to cash out, MicroStrategy is doubling down, cementing its position as a top corporate Bitcoin whale.

This story has been updated with new information.