Bitcoin
US transfers $240 million in Bitcoin from Silk Road to Coinbase
Bitcoin fell 2% after the US government moved 3,940 Bitcoins seized from a Silk Road seller.
Bitcoin (Bitcoin) came under selling pressure when the US government transferred $240 million worth of crypto to a main Coinbase address. Arkham Intelligence said the 3,940 BTC sent to Coinbase were originally confiscated from Silk Road seller and narcotics trafficker Banmeet Singh in a trial in January.
Silk Road BTC moved to Coinbase | Source: Arkham Intelligence
Silk Road was a dark web marketplace created by Ross Ulbricht in 2011. The Federal Bureau of Investigation (FBI) arrested Ulbricht in 2013 and shut down Silk Road. Later in 2022, US authorities confiscated around 50,000 BTC. Authorities have also seized Silk Road BTC on several occasions.
The wallet linked to the US authorities moved $2 billion worth of BTC on April 2, sparking similar speculation about sales at the time. After Wednesday’s transaction, the total cryptocurrency market fell modestly, along with BTC.
Crypto Markets Fall as US Government Moves Silk Road BTC | Source: CoinGecko
Government appeals to exchange sued for selling Bitcoin
In March 2023, the US government transferred $216 million worth of BTC into Coin baseCoinbase Prime institutional platform. The platform is the preferred vehicle for government settlements, but regulators have scrutinized Coinbase for violations and illegal trading conduct.
Under Gary Gensler, the Securities and Exchange Commission (SEC) accused Coinbase of operating an unregistered securities exchange and an unlicensed broker-dealer.
Coinbase denied the allegations and launched its counterarguments in court, accusing the SEC of denying crypto companies clear rules and registration processes. How Coinbase and the SEC blocked legal horns, the platform continued to meet US government demand tied to the sale of BTC.