In the early hours of today, the US government transferred approximately 30,175 bitcoins, with 2,000 bitcoins (worth about $130 million) being transferred to Coinbase. This is equivalent to the amount of bitcoins seized from the Silk Road case, which the US government announced in late January that it would sell, sparking speculation about the sale.
The US government has confiscated a large number of bitcoins from cases such as the Bitfinex hack and the Silk Road, making it the sixth largest bitcoin whale in the world, holding over 210,000 bitcoins, currently worth about $13.97 billion. How the US government handles these confiscated bitcoins has always been a topic of concern in the market, as any sale could affect the price of the cryptocurrency.
The US government is suspected to have sold $130 million worth of bitcoins
In the early hours of today, the US government transferred 30,175 bitcoins (worth approximately $1.96 billion), with 2,000 bitcoins (worth approximately $130 million) being transferred to Coinbase. This record indicates that the US government has likely sold some bitcoins.
According to the specific transfer records, according to the data from the cryptocurrency intelligence platform Arkham, the US Department of Justice first sent 0.001 bitcoins to the Coinbase Prime address (3KrZ) from the Silk Road BTC-related address (bc1qf), and then transferred about 30,000 bitcoins to a new address (bc1qk). This may have been a small test by the US government before making a large transfer to Coinbase.
Transfer of 0.001 bitcoins ($65.09) to Coinbase
After receiving the bitcoins, the new address (bc1qk) then transferred 1999.999 bitcoins (worth about $130 million) to the same Coinbase Prime address (3KrZ). According to experts from the blockchain community, based on the operating logic of exchanges, this new address (bc1qk) may be a receiving address specifically issued by the exchange to its customers, indicating that the US government may have deposited the funds into the exchange in preparation for the sale.
The remaining 29,800 bitcoins (worth about $1.96 billion) were transferred to a new address (bc1qj), which has not yet made any further transfers. However, it is not ruled out that this may be an internal arrangement by the exchange for large amounts of bitcoins held by customers. It is still necessary to continue monitoring whether the bitcoins will be moved to the exchange’s centralized wallet.
Transfer of 1999.999 bitcoins ($130 million) to Coinbase
Announcement in late January to sell 2,858 bitcoins
The amount of bitcoins transferred to Coinbase this time is equivalent to the 2,858 bitcoins seized from the Silk Road case that the US government announced in late January. This increases the possibility of the US government selling bitcoins. However, it is expected that the US government will sell in batches or over-the-counter (OTC), rather than selling all at once. The US Marshals Service has previously stated that it will try to prevent any adverse effects on the market.
According to the announcement in late January, the US government plans to sell two batches of bitcoins: the first batch of about 2,800 bitcoins and the second batch of about 58 bitcoins. These bitcoins were all confiscated by the authorities and originated from:
– Ryan Farace and his father, who were convicted of money laundering through bitcoins. These bitcoins were initially used for drug trafficking but were later discovered by the prosecution when they attempted to transfer over 2,874 bitcoins to a third party for moving funds to foreign bank accounts. Ryan Farace was sentenced to 54 months in prison last year for conspiracy to launder money.
– Former FBI special agent Shaun Bridges, who was originally a member of the Silk Road task force but was found in 2015 to have privately stolen bitcoins during the investigation. He was sentenced to six years in prison.
– Both the Farace father and son were ordered to forfeit their bitcoins, while Bridges agreed to transfer the stolen bitcoins to the US FBI.
In recent years, the US government has sold bitcoins from the Silk Road case on Coinbase in March of last year, totaling 9,861 bitcoins.
Related reports:
US government to sell $114 million worth of bitcoins, still holding over 210,000 bitcoins
US government is the “third-largest bitcoin whale”》Arkham: US holds over $6 billion worth of bitcoins
Will the US government “sell bitcoins at the peak”? Confiscated BTC worth surges to $8.5 billion.