U.S. Government Moves Nearly $2 Billion in Bitcoin Linked to Silk Road

According to blockchain intelligence firm Arkham, a wallet connected to the U.S. government has moved about $2 billion worth of Bitcoin to a new address. On December 2, this big deal, which was worth about $1.92 billion, happened.

Nearly 20,000 Bitcoin, which had been taken from the Silk Road black web bazaar, was transferred. After transferring the Bitcoin to an unspecified address, the U.S. government-controlled wallet divided the money among two new wallets.

One of these wallets received 10,000 BTC, worth roughly $969 million at the time of transfer. The second wallet held over 9,800 BTC, valued at more than $949 million.

Arkham highlighted the origins of these funds, linking them to the Department of Justice’s seizure of Silk Road assets. Ross Ulbricht, founder of Silk Road, is currently serving a life sentence for his role in operating the illegal marketplace.

A Recurring Pattern in Bitcoin Transfers

This isn’t the first large-scale Bitcoin movement by the U.S. government. In July, Arkham identified another transaction involving over $2 billion worth of Bitcoin from Silk Road-related holdings. During that instance, more than 29,800 BTC were split into two wallets amid heightened market sell-off pressure.

Although the most recent transaction’s goal is still unknown, Arkham hinted that deposits to institutional custody services might have been a part of earlier transactions. The U.S. Marshals Service revealed earlier this year that it uses Coinbase to hold Bitcoin, which further connects government actions to well-known cryptocurrency sites.

According to Arkham, the U.S. government currently owns more than 188,000 Bitcoin, which is worth $18.2 billion as of December 2. The government’s intentions regarding these holdings are still up for debate, particularly in light of President-elect Donald Trump’s stated desire to back a Bitcoin strategic reserve.