Mon 02 Dec 2024 ▪
3
min reading ▪ by
Eddy S.
The United States government recently transferred Bitcoin worth around $2 billion, seized during an investigation into the notorious online black market, Silk Road. This operation attracted the attention of crypto sector observers, as it represents one of the most significant Bitcoin movements carried out by American authorities.
US government transfers 2 billion in BTC linked to Silk Road
After the closure of the Silk Road platform and the arrest of its founder Ross Ulbricht, American authorities intensified their efforts to trace and confiscate funds associated with its activities. These funds, resulting from seizures made as part of this investigation, were confiscated from James Zhong, an individual accused of having stolen these bitcoins from the platform by exploiting a flaw in its system.
Zhong pleaded guilty in 2022 to computer fraud charges. The seized BTC, which was originally worth around $3.36 billion at the time of its confiscation, is now valued at almost $2 billion due to market fluctuations.
This transfer had an immediate impact on the crypto market. The price of BTC fell more than 2% in an hour, currently trading around $95,476. This volatility shows how movements of large amounts of Bitcoin can influence the market.
Mike Novogratz, crypto entrepreneur and CEO of Galaxy Digital, criticized the timing of this transfer. He pointed out that although the federal government frequently moves seized bitcoin between different wallets and custodians, these transfers do not always signal an intent to liquidate. However, the uncertainty surrounding these movements can cause significant price fluctuations.
In sum, the transfer of $2 billion in Bitcoin seized from Silk Road by the US government not only caused a temporary drop in prices, but also raised questions about the authorities’ future management of digital assets. Trump’s promise to create a strategic reserve of BTC could signal a turning point in government policy towards cryptos.
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Eddy S.
The world is evolving and adaptation is the best weapon to survive in this undulating universe. Basically a crypto community manager, I am interested in everything directly or indirectly related to blockchain and its derivatives. In order to share my experience and raise awareness of a field that fascinates me, there is nothing better than writing articles that are informative and relaxed at the same time.
DISCLAIMER
The comments and opinions expressed in this article are those of the author alone, and should not be considered investment advice. Do your own research before making any investment decisions.
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