US Government Transfers $300 Million Worth of Bitcoins Seized Via Silk Route
On Wednesday, July 12, the US government moved a total of 9,800 Bitcoins seized from the wallets of the infamous Silk Road and later moved them to the wallets controlled by crypto exchange Coinbase.
This is the second time that the US government has been moving its Bitcoins this year. The first instance was back in March 2023 when the government moved a total of $1 billion in Bitcoins from the Silk route.
James Zhong, the convicted Silk Road hacker, was found to be in possession of the Bitcoins. When he was arrested, federal authorities seized approximately 51,351.89785803 Bitcoins on three different occasions. They also confiscated a collection of precious metals and $661,900 in cash.
Following the major seizure, the government has been selling off its Bitcoin holdings in stages. In March, they sold $215 million worth of the digital asset, and there are plans to divest another $1.1 billion. The government's crypto transactions have had a significant impact on the crypto market, often causing fluctuations in Bitcoin's price. Tracking these movements is like watching a ticking time bomb, as each transaction has the potential to shake up the crypto landscape.
However, it’s still not clear whether the US government would be selling their Bitcoins this time. Considering the strong performance of Bitcoin this year, the government might be willing to wait further for BTC price appreciation.
Selling Bitcoin through Coinbase is not the usual practice for the U.S. government, which typically auctions off BTC with the help of the U.S. Marshals. For instance, when bitcoins were seized from Ross Ulbricht in the Silk Road case, they were auctioned off, and investors like Tim Draper bought some of the coins. It's only recently that the government has begun transferring cryptocurrency to spot exchanges.
In another development, Roger Thomas Clark, who used various aliases like "Plural of Mongoose," "Variety Jones," and "VJ," has been sentenced to 20 years in prison. He played a major role as an advisor to Ross Ulbricht, the person behind the Silk Road illicit black market.
Clark was involved in many activities related to the operation, including providing guidance to Ulbricht and even attempting to hire someone for murder. According to the Southern District Court of New York, Clark's personal journal revealed his significant influence over Ulbricht, acting as a mentor and advising on various aspects of Silk Road's operations and security. He also helped Ulbricht hire a programmer and provided guidance on protecting the criminal empire.