United States Government transfers $130 million in seized Bitcoin to Coinbase

  • US government moves $130million worth of Bitcoin to a Coinbase wallet.

The United States government has reportedly moved approximately $130 million worth of Bitcoin to the digital wallet of one of the biggest crypto exchanges in the world, Coinbase Global Inc. 

The latest development comes after the United States government announced in January, that it was going to offload almost $2 billion worth of Bitcoin, confiscated from the now-defunct dark web marketplace, Silk Road, as part of an “expected eventual liquidation of the seized assets.”

Initial reports stated that the transfer from a wallet linked to the US government was made to an unidentified crypto wallet, before Arkham Intelligence revealed that, the intended wallet on the receiving end, belongs to Coinbase Inc.’s Prime unit.

The U.S. government initially started the whole transfer process with a test transfer of 0.001 BTC ($69) to the Coinbase wallet address. The details of that transaction were made public to indicate transparency and planning on the part of the agency and were made known to the crypto space by on-chain analyst, ZachXBT on X.

“3KrZVU9Jz4UKHpKUtuvkEMX1tY8zeiTvX2” was the wallet address and “9c3af4b48e66565f1da1da8278036fa1dbb09f2beaaca99c3504475390ba4590” was the transaction hash. The subsequent transactions followed as in total, about $131 million in transfers were made on Tuesday to Coinbase. 

This move comes after Bitcoin saw a dip in its price to a weekly low of $64,500 before climbing above the $65,000 support level and has raised speculations in the crypto space about the timing and what the government intends to do with the assets it holds.  According to some market players, a potential sale of that magnitude could significantly impact the markets and affect the price of Bitcoin, which could trickle down and take the relatively smaller coins along for the ride. 

The United States government has yet to comment or confirm the transaction. The last time a transfer or sale was executed by the government was in March 2023 when it unloaded 9,861 BTC for $216 million. This came after the confiscation of almost 50,000 bitcoins related to the Silk Road website.

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