The U.S. Government Transfers $1 Billion in Seized Silk Road BTC

On-chain analytics businesses discovered the United States government redistributing funds.

According to public records on the Bitcoin blockchain, a government-linked Bitcoin wallet address transferred over $49,000 BTC yesterday, a figure worth around $1.08 billion at the time of writing.

Around 9,000 BTC ($199 million) was sent from the BC1QMX address to the BC1QE address, another 30,174 BTC ($667 million) was sent to the BC1QF address, and another 9,825 BTC ($217 million) was sent to the 367YO address. Around 825 bitcoins ($18 million) remain at the original address.

PeckShield, an on-chain security company, claims that the original owner of the address is the United States government and that it is being used to keep part of the $1.12 billion worth of bitcoin that was recovered from Silk Road hacker James Zhong in November of 2021. Zhong got the money in September 2012 by abusing the withdrawal system of the underground market. 

Both initial addresses were brand new when they got their 39,174 Bitcoin. A third address (367YO) was also found. However, it was revealed by PeckShield to be that of Coinbase, a cryptocurrency exchange in the United States. PeckShield’s results were mirrored by rival Bitcoin on-chain monitoring firms Glassnode and Lookonchain. The staff at Crypto Briefing could not prove wallet ownership on their own conclusively.

The transfer of funds sparked rumors on Twitter that the Department of Justice intends to sell some of the bitcoins it provided to Coinbase. The U.S. government has always chosen to dispose of its bitcoin holdings via public auctions, which appears implausible.

Also Read: Bitcoin Can Now Be Received Immediately By Baseball Fans

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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