YEREVAN (CoinChapter.com) — On Dec. 2, 2024, the U.S. government moved 20,000 BTC, valued at approximately $1.92 billion, according to Arkham, an on-chain analytics platform. This transfer comes from Bitcoin seized in Silk Road-related cases.
The movement split the Bitcoin into two wallets. The first wallet received 10,000 BTC worth around $969 million, while the second received 9,800 BTC valued at $949 million.
The U.S. Department of Justice has confiscated these Bitcoin holdings from the Silk Road, an illicit marketplace on the dark web. The transaction adds to the government’s extensive Bitcoin holdings, currently estimated at over 188,000 BTC, valued at $18.2 billion.
Donald Trump’s Strategic Reserve Plan Adds Political Context
With President-elect Donald Trump advocating for a Bitcoin strategic reserve, the timing of this U.S. government Bitcoin transfer has drawn attention. Trump has proposed using Bitcoin as part of national reserves, emphasizing its long-term value.
Critics questioned the rationale behind selling Bitcoin.
Gabor Gurbacs, crypto advocate and former VanEck executive noted,
US Gov Bitcoin Holdings. Source: Gabor Gurbacs“Why would you sell a hard asset for something you can print yourself? It’s just dumb,”
he added.
Similarly,Adam Back, a prominent figure in cryptocurrency, remarked,
U.S. Government Bitcoin: Coinbase Custody and Lack of Transparency
The U.S. government Bitcoin transfer is linked to Coinbase custody services, according to previous disclosures by the U.S. Marshals Service. Arkham also identified similar transactions in July 2024, where over 29,800 BTC from Silk Road forfeitures were moved to two wallets. At that time, speculation arose about potential sales or consolidation of wallets.
US Marshals Select Coinbase. Source: CoinbaseMoreover, in the current transfer, no official statement or auction details have been provided, leaving the purpose unclear. Arkham speculated it could involve custody upgrades or consolidating older wallets. However, transparency surrounding these transfers remains limited.
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