US government transfers $1.9 billion in Bitcoin to Coinbase

Government's crypto strategy impacts market sentiment amid large-scale Bitcoin transfers.

Key Takeaways

The US government moved 20,000 Bitcoin worth $1.9 billion to Coinbase from a Silk Road-related wallet. The wallet still contains approximately $18 billion in Bitcoin after the latest transfer. <?xml encoding="UTF-8"?>

The US government moved approximately 20,000 Bitcoin, valued at $1.9 billion, to crypto exchange Coinbase from a wallet containing seized Silk Road assets, according to data from Arkham Intelligence.

The wallet, which still holds about $18 billion in Bitcoin, contains digital assets confiscated from Silk Road, a dark web marketplace that facilitated trades in illegal drugs and weapons before its shutdown in 2013.

This transfer follows a previous movement in late October when the government reportedly sent 10,000 BTC, worth approximately $600 million, to Coinbase from the same wallet.

The latest transaction occurred in two stages, beginning with a test transfer of 0.001 BTC ($97) to a Coinbase Prime deposit address. This was followed by a transfer of 1,920 BTC (around $1.9 billion) to an intermediary wallet before reaching Coinbase.

Bitcoin’s price dropped to $96,200 following the transfer, according to CoinGecko data. The movement has attracted attention from crypto market participants who are monitoring the government’s handling of its Bitcoin holdings.

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