US government transfers over $200 million in Bitcoin ($BTC) to Coinbase, blockchain data shows

by Arthur · March 9, 2023

US government transfers over 0 million in Bitcoin ($BTC) to Coinbase, blockchain data shows

The US government has transferred a significant amount of its flagship cryptocurrency Bitcoin ($BTC) to Nasdaq-listed cryptocurrency trading platform Coinbase, according to data from the cryptocurrency’s blockchain.

According to cryptocurrency analysis firm PeckShield, 49,000 BTC worth about $1 billion from wallets related to the seizure of now-defunct darknet marketplace Silk Road has begun to move. The government sent 9,826 BTC worth $217 million to Coinbase, while another 39,175 BTC worth $867 million was transferred to two new addresses that appear to be internally controlled and not linked to any exchanges.

Silk Road was created by Ross Ulbrich in 2011 and shut down in 2013. Ulbrich is now serving a life sentence after being convicted of various charges, including engaging in a continuing criminal enterprise, drug distribution and conspiracy to commit computer hacking.

The US government seized 51,351 BTC linked to Silk Road after it took down the site. This recent transfer of Bitcoin raises questions about the government’s plans for these seized assets. It also highlights the ongoing interest of law enforcement agencies in cryptocurrency.

Also read: How to transfer from Coinbase to MetaMask

The use of Bitcoin on Silk Road was a controversial aspect of the online marketplace. Many assumed that the top crypto-asset enabled completely anonymous transfers that could evade law enforcement. However, this was not the case, as Bitcoin’s blockchain makes it possible to track transactions between addresses.

The impact of the government’s transfer of seized Bitcoin on the broader cryptocurrency market remains to be seen. At the time of writing, BTC is trading at $22,000 after falling more than 7% in the past week, amid a major decline in the cryptocurrency market.

As CryptoGlobe reported, last month Coibnase revealed a new product called “Base” – a new layer 2 solution testnet for Ethereum, built on the OP Stack, a development kit used by layer-2 Optimism.

Base was announced during ETHDenver, a community-led event where various crypto companies, startups and leading figures in the space announce new products, support projects and technological innovation, and discuss the crypto landscape and share ideas on Web3.