Bitcoin Falls After U.S. Government Actions
Bitcoin experienced a 2% decrease in value following the U.S. government’s transfer of 3,940 Bitcoin seized from a Silk Road vendor. The transfer of $240 million worth of crypto to a Coinbase Prime Address resulted in selling pressure on Bitcoin (BTC). Arkham Intelligence revealed that the transferred BTC was initially forfeited from Silk Road vendor Banmeet Singh in a January trial.
Silk Road and U.S. Government Bitcoin Transactions
Silk Road, a dark web marketplace established by Ross Ulbricht in 2011, was shut down by the FBI in 2013. In 2022, U.S. law enforcement confiscated approximately 50,000 BTC linked to Silk Road. Authorities have seized Silk Road BTC on multiple occasions. Recently, the U.S. government moved $2 billion in BTC in April 2024, leading to speculation about selling activities and subsequent market fluctuations.
Government Utilizes Coinbase for Bitcoin Sale
In March 2023, the U.S. government sold $216 million in BTC on Coinbase’s institutional platform, Coinbase Prime. Despite facing scrutiny and legal challenges from regulators, Coinbase remains a preferred platform for government liquidations. The SEC has charged Coinbase with various violations, including operating an unregistered securities exchange and unlicensed broker-dealer. Amid legal disputes, Coinbase continues to facilitate the sale of BTC for government entities.
