Crypto analytics firm PeckShield has revealed that the US government has abruptly transferred massive amounts of bitcoins (BTC) to Coinbase exchange wallet addresses.
According to the analytics firm, the government has transferred 9,826 BTC worth $217 million to Coinbase. It has also transferred an additional 39,175 BTC worth $867 million to two new addresses that seem to be internally controlled and not linked to any cryptocurrency exchange.
While there are a lot of speculations as to why the government chose Coinbase, some think it is a vote of confidence for the cryptocurrency exchange which seems to be weathering the crypto storm just fine.
BTC seized from Silk Road
Sources indicate that the bitcoins in question are part of the bitcoins seized from the now defunct, nefarious marketplace Silk Road.
For those who do not know, Silk Road was an online black market launched by Ross Ulbrich in 2011. It allowed people to use Bitcoin to evade law enforcement.
Silk Road was shut down in 2013, and its founder, Ulbrich, was convicted of “engaging in distributing narcotics, distributing narcotics by means of the internet, conspiracy to distribute drugs, conspiracy to commit money laundering, conspiracy to traffic fraudulent identity documents, and conspiracy to commit computer hacking” and is currently serving a life sentence without the possibility of parole.
The US government also seized 51,351 BTC in November 2021 and March 2022, all connected to Silk Road.
Commenting on the Silk Road Bitcoin seized by the United States Government, PeckShield stated In a follow-up tweet:
“51,351.9 $BTC of the Silk Road Crime Proceeds were seized by the US Government in November 2021 and March 2022 and consolidated in 2 addresses: bc1q5s…0ch and bc1q2ra…cx7”
The price of Bitcoin (BTC) has continued to drop over the last seven days dropping by about 7.54% according to Coinmarketcap data.
At press time, Bitcoin was trading at $21,678.51.