Massive transfer seen as routine, Bitcoin price dips slightly.
- U.S. government moves 19,800 BTC ($1.92 billion) from Silk Road seizures to Coinbase.
- Bitcoin price drops 2% to $95,250 following the transfer.
- Transaction fees totaled only $3.34 across two Coinbase wallets.
- Funds partly originated from James Zhong’s 2012 Silk Road theft.
- Donald Trump promises to free Silk Road founder Ross Ulbricht if elected.
According to a Bitnewsbot report, The U.S. government transferred approximately 19,800 Bitcoin ($1.92 billion) from seized Silk Road assets to Coinbase, stirring market speculation and causing a slight dip in Bitcoin’s price.
Blockchain analytics firm Arkham Intelligence confirmed the transfer occurred in multiple steps. The funds initially passed through an intermediate Bitcoin wallet before reaching two separate Coinbase addresses. The total transaction cost was a mere $3.34, highlighting the efficiency of Bitcoin’s network for moving large sums.
Bitcoin’s price dropped by 2% following the transfer, settling at $95,250. Such governmental movements often create market uncertainty; however, Coinbase Prime’s existing contract with U.S. authorities indicates the transfer may not signal immediate selling pressure.
The Bitcoin originated from the Silk Road marketplace, which was shut down in 2014. A significant portion of these funds came from James Zhong, who admitted to stealing 50,676 Bitcoin through system manipulation in 2012. Federal agents recovered these funds in 2022, marking one of the largest Bitcoin seizures in U.S. history.
Coinciding with this transfer, Donald Trump pledged to release Ross Ulbricht, the Silk Road founder, if elected. Ulbricht’s official account on X acknowledged this pledge, stating: “Immense gratitude to everyone who voted for President Trump on my behalf. I trust him to honor his pledge and give me a second chance.”
While the U.S. government has previously sold seized cryptocurrency assets, their partnership with Coinbase Prime indicates a more structured approach to digital asset management. The Department of Justice has not provided immediate comment on their plans for the transferred Bitcoin.
