US Government Tests Potential Bitcoin Sale from Silk Road Confiscation
Testing the Waters
A US government-controlled account, holding nearly $2 billion seized from the dark web marketplace Silk Road, made transactions hinting at a possible upcoming sale of these digital assets. The account executed various transactions on Tuesday, as reported by multiple blockchain analytics firms.
Transaction Details
The account sent around $65 to a deposit address at Coinbase Global Inc.’s Coinbase Prime unit. Subsequently, transfers totaling approximately $131 million were recorded at Coinbase, with a significant amount redirected to other US government-linked addresses.
Market Impact
Market analysts noted that the $65 transaction seemed to be a test by the US government. The small amount was sent to Coinbase Prime, while the larger sum was credited back as ‘change output’. This test likely precedes a larger transfer to Coinbase Prime.
Bitcoin Movement
Following these transactions, about 2,000 Bitcoins were consolidated from various government addresses and moved to Coinbase, according to Flipside Crypto. These movements, although typically anonymous, are closely watched by market participants for their potential impact on Bitcoin’s price.
History of Silk Road
The Silk Road platform, shut down by the government in 2013, allowed users to buy illicit goods with Bitcoin. Federal agents seized $3.6 million worth of Bitcoin at the time, now valued in billions due to the cryptocurrency’s rally.
Overall, the US government’s potential sale of Silk Road-confiscated Bitcoin has piqued interest in the market, with observers eagerly awaiting further developments.
