Feds Move Bitcoin From Seized Silk Road Wallet with $2 Billion in Assets: What's the Impact on Cryptocurrency Markets?

Blockchain data reveals that the United States Department of Justice has initiated the movement of some of the $2 billion worth of Bitcoin held in a seized Silk Road wallet. The funds were transferred to an address believed to belong to crypto exchange Coinbase.

According to pseudonymous blockchain analyst ZachXBT, the transfer involved a test transaction of 0.001 BTC (approximately $69), followed by approximately 2,000 BTC ($131.27 million) being sent to a Coinbase deposit address.

Bitcoin Seizure: $2 Billion Funds Moved to Coinbase Prime, Highlighting Authorities' Handling of Cryptocurrency Assets

Arkham Intelligence, a platform tracking blockchain data, confirms that the funds were moved to Coinbase Prime, based on a U.S. government-labeled address. Despite this movement, the majority of the $2 billion worth of Bitcoin remains unspent at present.

It's common for authorities to hold seized Bitcoin from criminal activities and occasionally transfer or sell it. In a notable case from November 2021, authorities seized $3.36 billion worth of BTC after hacker James Zhong admitted to stealing digital assets from the illicit Silk Road marketplace.

Bitcoiners closely monitor movements of large BTC holders, as such actions can impact the market. Previous movements, or even speculation about potential movements, have sometimes resulted in downward pressure on Bitcoin's price, as observers anticipate potential selling.