US government transfers $590M worth of Silk Road seized Bitcoin to Coinbase

• The US has reportedly moved 10,000 BTC seized from Silk Road to Coinbase.
• The government still holds 203,200 BTC, valued at around $12B.
• Future sales by the US could impact the cryptocurrency market.

The United States government has transferred 10,000 Bitcoin (BTC) worth approximately $590 million to Coinbase wallet, according to data from Arkham Intelligence.

The transferred BTC is linked to assets seized from the infamous Silk Road dark web marketplace.

US government Bitcoin transfers

The transferred Bitcoin originated from a wallet associated with the US government, which currently holds a significant amount of the cryptocurrency.

According to Arkham’s data, the US government still controls over 203,200 BTC, making it the largest national holder of Bitcoin globally. These holdings are valued at approximately $12 billion based on current market prices.

The majority of the government’s Bitcoin reserves have been accumulated through law enforcement actions, particularly the seizure of approximately 174,000 BTC from the Silk Road marketplace.

The Silk Road was a notorious online black market that facilitated the sale of illegal goods and services before being shut down by authorities in 2013. Since then, the US government has periodically sold off portions of the seized Bitcoin in auctions, but large transfers like the recent one to Coinbase have sparked speculation about potential future sales.

The recent move follows a previous transfer of around $241M Bitcoin in late June followed by another $2B Bitcoin in late July, raising questions about the government’s intentions with these digital assets. Whether the government plans to sell or continue to hold the Bitcoin remains unclear.

The decision to move such a large amount of Bitcoin into a Coinbase wallet has attracted significant attention, as it could signal upcoming market activity.

Investors and analysts are closely watching the situation, as any major sale by the government could impact the cryptocurrency market.