The United States government has moved approximately 19,800 Bitcoin (BTC) valued at nearly $2 billion to cryptocurrency exchange Coinbase Prime, marking one of the largest crypto transfers by authorities in recent history.
The transferred Bitcoin originated from seizures related to the Silk Road dark web marketplace, particularly from James Zhong, who admitted to stealing over 50,000 BTC from the platform in 2012. Zhong later pleaded guilty to wire fraud charges after authorities recovered the assets in 2022.
According to blockchain intelligence firm Arkham, the transfer occurred in multiple steps. The government first sent a test amount of 0.001 BTC ($97) to verify the destination address. Following confirmation, authorities moved the bulk amount of 19,800 BTC through an intermediary wallet before reaching Coinbase Prime accounts.
The transfer sparked market speculation about potential selling pressure, though Bitcoin prices remained relatively stable, showing only a modest 1.6% decline to $95,580. The movement comes after a March 2023 sale where the government liquidated 9,861 BTC for $216 million.
The U.S. Marshals Service, a Department of Justice division, maintains a partnership with Coinbase Prime for managing and trading confiscated digital assets. This arrangement streamlines the handling of seized cryptocurrencies through institutional-grade trading services.
Despite the government's apparent moves toward liquidation, major players like MicroStrategy continue accumulating Bitcoin. The company recently added 15,400 BTC to its holdings, worth approximately $1.5 billion, highlighting the contrasting approaches between institutional investors and government authorities.
The U.S. government still holds substantial cryptocurrency assets, including approximately $18 billion worth of Bitcoin, $217 million in Ethereum, and $122 million in USDT at the time of reporting.