US Government Moves Bitcoin to Coinbase Prime

user avatar

by Giorgi Kostiuk

2 years ago

Recently, approximately $2 billion worth of Bitcoin, seized by the US government in connection with the Silk Road investigation, was transferred to the Coinbase Prime platform.

Transfer Details

Blockchain data from Arkham Intelligence revealed that a wallet labeled “US Government: Silk Road DOJ Seized Funds” moved 19,800 BTC to a new address before depositing the funds to Coinbase Prime. The wallet had no previous transaction history, leading to speculation that the government may be preparing to sell the assets.

Market Reaction

Historically, government-seized BTC sales have triggered significant market reactions. Earlier this year, similar sales led to sharp declines in Bitcoin prices. However, today the impact of the transfer was more subtle, with Bitcoin prices falling just over 1% to around $95,800 following the news.

History of the Silk Road Case

The BTC in question stems from a 2022 Department of Justice (DOJ) case in which over 50,000 BTC was seized, and a Silk Road user, James Zhong, was arrested. Zhong pleaded guilty to wire fraud after authorities accused him of abusing Silk Road’s transaction system in 2012. In November, a U.S. District Court in Northern California allowed the government to liquidate some or all of the Silk Road-related BTC while awaiting the resolution of a Freedom of Information Act (FOIA) lawsuit.

The transfer of Bitcoin to Coinbase Prime highlights the US government's ongoing management of seized crypto assets. Despite this transaction, the government still holds approximately $18 billion worth of confiscated cryptocurrencies.

Tier I

Sector: #18291

Sealed Cache Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, caches will be stored in your inventory and can be opened with Keys.

Other news

Zcash's Impressive Market Performance and ETF Launch

chest

Zcash has experienced a remarkable price increase, gaining over 2,300% in the past year, aided by the launch of Grayscale's Zcash ETF.

user avatarLucas Weissmann

Zcash Surpasses $1,000 Mark, Achieving New All-Time High

chest

Zcash's price broke above $1,000 for the first time in nearly a decade, marking a significant milestone in its market performance.

user avatarRajesh Kumar

Trezor Implements New Security Measures After Data Breach

chest

Trezor is enhancing security measures, including anonymous delivery options, in response to a data breach affecting 67,000 customers.

user avatarFilippo Romano

Data Breach Affects 67,000 Trezor Customers

chest

A data breach at shipping provider ShipMonk has exposed personal information of 67,000 Trezor customers in the US.

user avatarEmily Carter

BAI Establishes Global Settlement Layer for AI Agents to Enhance Collaboration

chest

BAI is building a global settlement layer to enhance collaboration and efficiency among AI agents across various workflows.

user avatarTomas Novak

BAI Launches Free Access to Premium AI Models, Surpassing 133 Trillion Daily Tokens

chest

BAI has launched free access to its premium AI models, leading to a significant increase in platform activity and user adoption.

user avatarKaterina Papadopoulou

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.