The US government is moving nearly $2 billion worth of Silk Road Bitcoin to Coinbase

The FBI moved nearly $2 billion in seized property on Monday Bitcoin from the closed dark web marketplace Silk Road to Coinbase, blockchain data shows.

Arkham Intelligence marked the transactions of the US government. It said the Bitcoin originated from the Silk Road marketplace and was eventually moved to America’s largest digital asset exchange after a brief stop at another Bitcoin wallet. Ultimately, 19,800 BTC (or $1.92 billion) was transferred.

The FBI shut down the Silk Road online black market in 2014. The platform was widely used to purchase illegal drugs and services – often with cryptocurrencies such as Bitcoin.

Some of the Bitcoin held by US authorities was seized from James Zhong, who pleaded guilty to wire fraud last year.

Zhong manipulated the Silk Road transaction system in 2012 to steal 50,676 Bitcoins. The Feds seized the supply in 2022 after the price of BTC skyrocketed. It was one of the largest Bitcoin seizures in history.

According to Arkham, the massive stash of 19,800 Bitcoin that was moved on Monday went to two different Coinbase wallets for a fee of just $3.34.

Bitcoin’s price According to CoinGecko, the price is now down more than 2% over a 24-hour period. The price is currently $95,250.

When the government moves large amounts of Bitcoin, it can scare investors, who speculate that the coins may be for sale. But Coinbase Prime now has a contract with the US government to manage and sell its digital assets, meaning a sale may not be imminent just because Coinbase is involved.

The US government did not immediately respond Declutter‘s questions, but has in the past sold abolish the confiscated Bitcoin.

Newly elected President Donald Trump has promised to release Silk Road founder Ross Ulbricht upon taking office, after Ublricht spent more than eleven years behind bars.

“Immense gratitude to everyone who voted for President Trump on my behalf,” was posted last month on an official Ulbricht account on X (formerly known as Twitter), run by his wife. “I trust that he will keep his promise and give me a second chance.”

Edited by Andrew Hayward