In a gradual yet steady process, the US government is disposing of its Bitcoin holdings associated with Silk Road.
The speculations surrounding the United States government’s sale of another substantial batch of Bitcoin (BTC) linked to the now-defunct darknet marketplace, Silk Road, have been substantiated by on-chain analysts at CryptoQuant.
CryptoQuant shared a report with CryptoPotato, stating that the firm successfully sold 8,200 BTC associated with Silk Road hacker James Zhong on July 12.
The recent sale of 8,200 BTC from Silk Road hacker James Zhong fell slightly below earlier predictions, suggesting that the government had transferred approximately 9,826 BTC from its identified wallets. Notably, this amount is also lower than the government’s initial confirmed sale of 9,861 BTC, which fetched $216 million in March.
The majority of the coins were consolidated into a single transaction, totaling 9,319 BTC. This transfer involved sending 8,200 BTC to one address and 1,119 BTC to another.
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According to CryptoQuant, the previous address that received the 8,200 Bitcoin subsequently forwarded them to various other addresses, with each of these addresses receiving 79 Bitcoin. These coins were ultimately deposited into exchanges or consolidated into fewer wallets.
Although it is not yet confirmed, the other address with 1119 BTC is said to be controlled by the government. It stated:
“This address is highly likely the change address of the transaction.”
The company stated that the government still owns 195,307 BTC. All these are related to the seizures from many other criminal incidents, including the Bitfinex hack.
Source: https://econintersect.com/us-government-offloads-another-8200-bitcoin-on-chain-data