US Government transfers $600 million in seized Silk Road Bitcoin to Coinbase Wallet

According to Arkham Intelligence data, nearly $600 million worth of Bitcoin has been transferred to a Coinbase wallet.

Arkham in an X post said that a crypto wallet that received 10,000 BTC from a known US Government wallet about two weeks ago has just been moved to a prime deposit Coinbase wallet.

Furthermore, Arkham Intelligence data reported that about two weeks ago a cryptocurrency wallet that is identified to belong to the United States Department of Justice (DOJ) had transferred $2 billion worth of BTC that is said to be confiscated to another wallet, yet to be identified.

The post stated that BTC might be part of the nearly $2 billion worth of BTC the DOJ seized from the dark web market of the now-defunct Silk Road. A wallet that had over 30,000 BTC sent a test transaction of 0.001 BTC to a different wallet belonging to Coinbase Prime in April.

It was reported that at the end of last year, a U.S. appeals court finalized a mandate that officially declared the forfeiture of roughly 70,000 BTC and other cryptocurrencies related to Silk Road.

In late 2022, the government seized roughly 50,000 bitcoins related to the Silk Road website, and the last government sale by the government was in March 2023. During the sale, it sold 9,861 coins for $216 million. About 2,000 bitcoins were sent to a wallet reported by Arkham as belonging to popular cryptocurrency exchange Coinbase. The remaining funds were moved to a wallet identified as belonging to the government, Arkham posted.

Silk Road was an online marketplace that allowed individuals to buy illegal goods like drugs using the anonymous Tor network. Customers of Silk Road used crypto like BTC to buy different products. However, in 2014, authorities shut down the website and confiscated the digital assets that the Silk Road platform had received. For more than a decade, the seized BTC by the United States authorities has been sold in chunks.

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