Feds Move Bitcoin From Seized Silk Road Wallet Holding $2 Billion in Funds

The feds are moving their Bitcoin stash again. 

Blockchain data shows that on Tuesday morning, a wallet tagged as belonging to the United States Department of Justice started moving some of the $2 billion worth of held BTC to an address believed to be crypto exchange Coinbase. 

Pseudonymous blockchain analyst ZachXBT said on Twitter/X that the funds were moved to a Coinbase deposit address. A small test transaction of 0.001 BTC (about $69) was sent before approximately 2,000 BTC ($131.27 million) followed.

Arkham Intelligence, which tracks blockchain data, has a U.S. government-labeled address on its platform. It shows that the funds were moved to Coinbase Prime. The majority of the $2 billion in Bitcoin remains "unspent" as of this writing according to transaction data, however.

US Will Sell $117 Million in Bitcoin Seized From Silk Road Drug Trafficker

The United States has announced plans to sell about $117 million worth of Bitcoin seized from a convicted drug trafficker who operated on the now-shuttered Silk Road dark web marketplace. A forfeiture notice from earlier this month is now available online, with the government noting that it plans to "dispose" of the cryptocurrency. The notice follows sentencing earlier this month for 38-year-old Ryan Farace and his 72-year-old father Joseph Farace, both of Maryland, for the charge of money laund...

The feds hold Bitcoin that’s been seized from criminals and sometimes move it around. Sometimes they intend to sell it.

In January, the government announced plans to sell 2,933 BTC—about $133.5 million at the time of listing—but said it would provide 60 days for non-defendants to file a petition to claim an interest in the cryptocurrency. Tuesday's movements may be tied to that expected sale.

Back in November 2021, authorities seized $3.36 billion worth BTC after hacker James Zhong confessed to stealing digital assets from the illegal Silk Road marketplace—where people could use crypto to buy drugs and other illicit goods.

Bitcoiners tend to keep an eye on big and well-known BTC holders when they move large amounts of funds. Previous movements—or even suspected movements—have sent the price of the Bitcoin downwards because observers expect it to be sold.

Edited by Andrew Hayward

Editor's note: This story was updated after publication with additional details.