U.S. Authorities Strikes $1B of Seized Silk Street BTC, Prompting Liquidation Fears

Key Takeaways

  • A pockets related to seized Silk Street funds moved $1.08 billion in BTC.
  • The deal with moved 39,174 BTC to 2 new wallets, and 9,825 BTC to a pockets reportedly belonging to Coinbase.
  • The funds have been initially seized from Silk Street exploiter James Zhong in November 2021.

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The DOJ could have despatched a number of the seized Silk Street funds to Coinbase, however that doesn’t imply they’re about to liquidate.

$1.08 Billion in BTC

It seems that a few of Silk Street’s bitcoins are on the transfer.

On-chain knowledge reveals {that a} Bitcoin pockets deal with related to the U.S. authorities moved roughly 49,000 BTC yesterday—a sum price roughly $1.08 billion on the time of writing. 

The deal with, which begins with BC1QMX, transferred about 9,000 BTC ($199 million) to an deal with starting in BC1QE, then 30,174 BTC ($667 million) to a second deal with starting in BC1QF, and 9,825 BTC ($217 million) to a 3rd deal with beginning in 367YO. A bit over 825 bitcoins ($18 million) stay within the authentic deal with.

In keeping with on-chain safety agency PeckShield, the unique deal with belongs to the U.S. authorities, which makes use of the pockets to retailer a number of the 50,676 BTC ($1.12 billion) it seized from Silk Street exploiter James Zhong in November 2021. Zhong obtained the sum by exploiting the darknet market’s withdrawal mechanism in September 2012. He pleaded responsible to 1 rely of wire fraud in November 2022. 

The primary two addresses, which acquired a mixed complete of 39,174 BTC, have been freshly created. Nonetheless, PeckShield recognized the third deal with (367YO) as belonging to U.S.-based crypto change Coinbase. Bitcoin on-chain analytics agency Glassnode and on-chain analytics agency Lookonchain each echoed PeckShield’s findings. Crypto Briefing was unable to independently confirm pockets possession.

The transferring funds prompted hypothesis on Twitter that the Division of Justice could also be looking for to promote a number of the bitcoins it despatched to Coinbase. That appears unlikely, nevertheless, because the U.S. authorities has traditionally elected to liquidate its bitcoin holdings by way of public auctions. 

Disclosure: On the time of writing, the creator of this piece owned BTC, ETH, and a number of other different crypto property.

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