DOJ Moves $2B in Seized Silk Road Bitcoin to New Wallet

03 Apr 2024

Mitchell Nixon

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DOJ Transfers $2 Billion in Seized Silk Road Bitcoin to New Address

Approximately $2 billion worth of Bitcoin, previously confiscated by United States authorities and linked to the Silk Road marketplace, has been transferred to a new address.

On April 2, blockchain data revealed that a wallet associated with the U.S. Justice Department initiated a 0.001 BTC transaction to a Coinbase Prime address, potentially as a test transaction. Shortly after, the same wallet moved 30,174 BTC, equivalent to roughly $2 billion, to a new address. 

DOJ Sells 9,861 BTC Seized from Silk Road, Retains 40,000 BTC

This wallet is recognised as holding Bitcoin seized from James Zhong, convicted in 2022 for involvement in acquiring crypto unlawfully from Silk Road, where he stole over 50,000 BTC in 2012. In 2021, authorities raided Zhong’s property and found hard wallets containing Bitcoin, including one hidden in a popcorn tin. Most of the confiscated crypto was transferred to the same address that relocated over 30,000 BTC on April 2.

In March 2023, U.S. government authorities announced the sale of around 9,861 BTC, seized from Zhong, for over $215 million, leaving approximately 40,000 BTC remaining. The transaction on April 2 coincided with Bitcoin’s price dropping over 7% to $65,475 at the time of the event.

The Silk Road platform, inactive for over a decade, facilitated the buying and selling of illegal commodities such as weapons, drugs, and stolen credit card details. Its founder, Ross Ulbricht, was apprehended by U.S. authorities in 2013 and is currently serving two life sentences with no chance of parole.

It is currently unknown whether it will be liquidated quickly or sold over time

Conclusion:

The DOJ’s recent transfer and sale of seized Silk Road Bitcoin underscore the ongoing management of confiscated assets from one of the most notorious marketplaces in cryptocurrency history. As the value and significance of Bitcoin continue to evolve, so does the landscape of Bitcoin mining and Bitcoin investment opportunities.

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