America authorities has moved Bitcoin valued at over $1.9 billion, confiscated through the Silk Street investigation, to a Coinbase Prime pockets.
This switch, documented on December 2nd, concerned roughly 19,800 Bitcoin, as reported by blockchain analytics agency Arkham Intelligence.
The Bitcoin was initially seized in 2021 following an investigation into James Zhong, who was later convicted of wire fraud linked to the now-defunct Silk Street market.
In 2022, the Division of Justice revealed it had recovered over 50,000 Bitcoin from Zhong, a few of which was hidden in unconventional areas, akin to a “single-board pc” inside a popcorn tin.
Whereas parts of the confiscated Bitcoin have been moved throughout varied wallets, the federal government nonetheless holds vital reserves, estimated at round $18 billion.
The motive for the newest switch stays unclear, although some speculate it might be a part of a broader technique to liquidate or handle the property.
Discussions concerning the potential creation of a “strategic Bitcoin reserve” have additionally gained traction, with figures like Senator Cynthia Lummis and President-elect Donald Trump advocating for such initiatives.
Earlier this yr, the US Marshals Service partnered with Coinbase Prime to deal with the custody of Bitcoin and cryptocurrencies acquired by means of asset forfeitures.
In the meantime, Coinbase continues to face regulatory scrutiny, together with a civil lawsuit filed by the Securities and Alternate Fee in mid-2023.
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