Addresses linked to the US government transferred $1 billion worth of Bitcoin (BTC) to different wallets via Silk Road.
Silk Road, which had been the scene of many illegal acts before, was closed in 2013 by the American Federal Bureau of Investigation (FBI). U.S. law enforcement has confiscated thousands of Bitcoins on Silk Road over the years, a significant portion of which has been auctioned off from time to time.
9,861 BTC Transferred to Coinbase Platform
Bitcoins worth $1 billion were moved from multiple wallets linked to United States Government law enforcement seizures to new addresses. Some of the moved assets were transferred to the Coinbase platform on March 8.
According to data shared by on-chain analytics firm PeckShield, three different transfers were made from wallets of US law enforcement agencies. These wallets contained approximately 51,000 BTC seized by US institutions via Silk Road in November 2021. The seized BTCs were merged into two different wallet addresses.
The amount transferred from these three transfers to the Coinbase platform is 9,861 BTC, while the other two transfers include separate transactions of 30,000 BTC and 9,000 BTC.
Although a small portion of the 50,000 BTC was transferred to Coinbase, the emergence of billions of BTC from US law enforcement-linked wallets aroused curiosity. Many users on Twitter have produced various theories and pointed out that if Silk Road decides to sell their Bitcoin, it will create significant selling pressure on the market.
Founded by American Ross Ulbricht in 2011, Silk Road was one of the first platforms to accept Bitcoin payments and helped spread crypto usage. From the platform, which later ceased to operate, US law enforcement seized a large number of BTC and put them up for auction.
Popular Bitcoin advocate Tim Draper bought 30,000 BTC in an auction that took place in 2014.
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