US Government Moves $300 Million Worth of Bitcoin, Prompting Liquidation Fears
- Bridget Hubbard
- July 13, 2023
- news, Bitcoin, Crypto
- Bitcoin, Crypto, Liquidation, US
- 0 Comments
The US government transfers over $300 million worth of Bitcoin linked to Silk Road, raising concerns about potential market impact and sell-offs.
Key Points
- US Justice Department transfers over $300 million worth of Bitcoin linked to Silk Road to new addresses.
- Concerns arise over potential sell-offs and market impact on Bitcoin’s value.
- The move follows a larger transaction in March involving $1 billion worth of BTC.
- Seized Bitcoin associated with Silk Road has been gradually sold by the US government in previous batches, with more sales planned for 2023.
In a recent development, the United States government has made another significant movement with regards to Bitcoin associated with Silk Road, a notorious darknet marketplace. The US Justice Department transferred over $300 million worth of Bitcoin from two wallets to two new addresses. This operation was carried out in three separate transactions, as evident from the on-chain data provided by Blockchain.com.
The US government was noticed to have moved US$300 million worth of #Bitcoin over the last 24 hours. This movement was spotted in on-chain data from wallets known to be linked to the US Department of Justice. 🧐🇺🇸
More on our latest #BTSEAnalysishttps://t.co/ZAmivlM4HC
— BTSE (@BTSE_Official) July 13, 2023
$300 Million in BTC
This latest transaction involves the movement of bitcoins that were originally linked to Silk Road. The Federal government-controlled wallets were responsible for transferring a staggering 9,825 Bitcoins, equivalent to approximately $301 million. This transfer comes after a much larger transaction in March, where about $1 billion worth of BTC was moved, resulting in a decline in the value of all major cryptocurrencies.
The US authorities occasionally move confiscated BTC as they have the power over funds seized from criminal activities. Sometimes, these movements are made in anticipation of selling the coins, but not always.
Impact on Bitcoin Market
Investor fears have escalated following this recent transfer, as there are concerns that the influx of coins into the market could fuel sell-offs and subsequently drive down the price of Bitcoin. Immediately after the transaction was conducted, the value of BTC witnessed a slight dip. At the time of reporting, Bitcoin was trading at $30,327.04 per coin, marking a 0.8% decrease in the last 24 hours.
In November 2022, law enforcement agencies confiscated over 50,000 bitcoins from hacker James Zhong, who pleaded guilty to wire fraud related to the hack of these digital assets from Silk Road back in 2012. Silk Road was an online black market operated by Ross Ulbricht, where illegal goods such as weapons, drugs, and stolen credit card information were commonly traded using Bitcoin as the preferred payment method. The authorities shut down Silk Road in 2014, and Ulbricht was subsequently sentenced to life in federal prison in 2015 without parole.
The court filings provided information about the related BTC wallets, enabling online investigators to track these addresses. Over time, the US government has been selling the seized BTC in increments. Following the sale of the cryptocurrency in March, it was announced that the remaining bitcoin would be sold in four more batches throughout 2023.
Conclusion
The recent transfer of over $300 million worth of Bitcoin associated with Silk Road by the US government has caused a stir in the cryptocurrency market. Concerns about potential sell-offs leading to a decline in Bitcoin’s value have emerged among investors. With the FBI having control over confiscated Bitcoins, these types of transactions are not uncommon. However, the scale of such movements and their potential market impact continue to draw attention. As the situation unfolds, market participants will closely monitor any further developments regarding the fate of the seized BTC.
