The world of cryptocurrency was sent into a frenzy as news of a massive move of above 50,000 Bitcoins worth a staggering $1 billion hit the airwaves. What made this transfer all the more intriguing was the fact that the Bitcoins had been seized by US agencies from the notorious Silk Road marketplace back in November 2021.
The funds were then moved from different wallets linked to US Government legislation enforcement seizures to new addresses, with some of the Bitcoins also being transferred to Coinbase.
PeckShield, an on-chain analytics firm, reported that the wallets of US law enforcement agencies were used to make three transfers, including a 30,000 BTC transfer, a 9,000 BTC transfer, and an internal transfer. Although the majority of the transfers were internal, approximately 9,861 BTC was transferred to Coinbase.
For those not familiar, the Silk Road, a notorious black market in oniline world, was launched in 2011 by its American founder, Ross Ulbricht, under the pseudonym “Dread Pirate Roberts.” It was among the first to accept Bitcoin payments, and its acceptance of the cryptocurrency helped popularize its use.
US law enforcement agencies seized multiple items from Ulbricht. They have been auctioned off periodically. Tim Draper, a well-known Bitcoin advocate, famously purchased almost 30,000 bitcoin during one such auction back in 2014. In 2015, the US Marshals Service sold 21 blocks of 2,000 BTC along with one block of 2,341 BTC. in an online auction.
The transfer of BTC worth billions from wallets linked to US law enforcement agencies, in a distinct manner has elicited various reactions and raised many questions among Twitter users. Few speculate that selling of Silk Road Bitcoin bu the government US could put high selling pressure on the crypto market, and others have questioned the period of the sale.
It is still unclear why the funds were moved, and none of the parties involved have released any statements on the matter. However, some speculate that the US government may be preparing to sell the Bitcoins seized from Silk Road. If this happens, it won’t be the first time, but the potential scale of the sale could have a significant impact on the market. Such a sale could put significant selling pressure on the market and even cause the price of Bitcoin to drop.
