Coinbase receives 240 million worth of Bitcoin from US Silk Road seizure

Bitcoin experienced a 2% decrease following the U.S. government’s action of transferring 3,940 Bitcoin from a Silk Road vendor. movement led to $240 million worth of cryptocurrency being sent to a Coinbase Prime Address. Arkham Intelligence stated that these Bitcoins were originally seized from Road vendor and narcotics dealer Banmeet Singh during a trial in January.

Silk Road, an dark web marketplace founded by Ross Ulbricht in 2011, was shut down by the FBI after Ulbricht’s arrest in 2013. The U.S. law enforcement has approximately 50,000 BTC from this platform over time.

The recent transfer on resulting in approximately $2 billion worth of BTC moved by the wallet linked to U.S. authorities triggered speculation about potential activities at that time. Consequently, the overall cryptocurrency market experienced a moderate decline along with following this transaction.

In March 2023, the U.S. government sold off $216 million worth of BTC on Coinbase’s institutional platform called Coinbase Prime. This platform is favored for government liquidations; however, it has been under scrutiny for violations and illegal business conduct by regulators.

Under Gary Gensler’s leadership as chairperson, the Securities and Exchange Commission (SEC) charged Coinbase with operating an unregistered securities exchange and an unlicensed broker-dealer. However, Coinbase refuted these allegations initiated legal proceedings against the SEC while continuing its services for selling BTC tied to demand from the.S. government amidst legal battles with regulatory authorities.

For more information:
– Analyst Bitcoin bull run far from over
– Government taps sued exchange for Bitcoin sell-off
– Report: Coinbase loses second place in global top ranking