KEY POINTS
- The U.S.-labeled wallet specifically transferred 30,174.7 BTC
- Some crypto experts see the move as a positive signal on how the U.S. views crypto
- The U.S. government also moved seized Silk Road BTC last year
A digital wallet identified by multiple blockchain analysis firms and crypto analysts as belonging to the U.S. government has moved billions worth of Bitcoin (BTC) seized from the notorious darknet Silk Road website late in 2021, on-chain data revealed.
Several blockchain analysts confirmed on Tuesday that more than 30,000 BTC seized by the U.S. government from the Silk Road hack had been transferred to a Coinbase deposit address. Data from the blockchain showed that the wallet containing the funds moved a total of 30,174.7 BTC worth some $2.09 billion based on current prices.
Over $3 billion worth of Bitcoin was seized from hacker James Zhong in November 2021. He admitted to stealing digital coins from the dark web created by Ross Ulbricht, who is serving two life sentences. Zhong, on the other hand, was sentenced to just one year and one day for pilfering approximately 50,000 Bitcoins from the Silk Road.
Prominent blockchain researcher ZachXBT said the activity could've possibly been a "test transfer." Data from blockchain analytics company Arkham Intelligence says the wallets that sent and received funds were both labeled "U.S. Government: Silk Road DOJ Confiscated Funds."
30.1K BTC ($2.1B) of Silk Road hack funds controlled by US government is on the move right now.
— ZachXBT (@zachxbt) April 2, 2024
0.001 BTC ($69) transferred to a Coinbase deposit address so it’s a test transfer possibly.
txn hash
9c3af4b48e66565f1da1da8278036fa1dbb09f2beaaca99c3504475390ba4590
Coinbase…
While this isn't the first time a U.S. government wallet moved seized funds, some crypto enthusiasts and experts on X (formerly Twitter) deemed the move as a pivotal shift in how Washington's attitude toward Bitcoin has evolved in recent years.
Founder of mining pool Emcd.io Jerlis Michael said the move "signals bullish trust by govt entities in crypto's liquidity & infrastructure." For Michael van De Poppe, founder and CEO of MN Trading Consultancy, the development is a positive signal as the BTC will be brought back to the markets.
Massive movement of BTC to Coinbase signals bullish trust by govt entities in crypto's liquidity & infrastructure. This could be a pivotal moment for blockchain's integration into mainstream finance.
— Jerlis Michael (jerlis.eth) (@jerlis_here) April 2, 2024
In every market, we've got bullish and bearish narratives.
— Michaël van de Poppe (@CryptoMichNL) April 2, 2024
At peak bullish momentum, you'll see a huge impact of every bearish narrative.
This time, it's the Silk Road #Bitcoin being transferred.
I'm happy they do it, bring them back on the markets.
Anyway, buy the dip.
The last time the U.S. government moved Silk Road funds was in mid-2023. At the time, 9,825 Bitcoin worth some $301 million were moved to new addresses.
The U.S. has been moving some of its seized funds in recent weeks, as it transferred around $922 million worth of BTC from wallets that held funds from the $4.5 billion exploit of crypto exchange Bitfinex in 2016.
Coincidentally, or not, the transfer was made on the same day BTC crossed the $60,000 mark for the first time in more than two years. A day earlier, Bitfinex hacker Ilya Lichtenstein appeared before the court to testify about how he broke into the exchange's system.
