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Crypto News

US Government Releases Seized Silk Road Bitcoins Worth $300 Million

Author

Jay Solano

Tags

Reading time

1 min
Last update

Author

Jay Solano

Tags

Reading time

1 min
Last update

Author

Jay Solano

Tags

Reading time

1 min
Last update

bitcoin

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According to onchain statistics, the American government moved 9,800 bitcoins (BTC) valued little over $300 million on July 12, 2023. These bitcoins were initially obtained through the Silk Road hack by James Zhong. The Department of Justice also relocated a comparable quantity of Silk Road-related Bitcoins in March.

On Wednesday, it was said that 9,800 BTC from Silk Road were transferred in two transactions to wallets under Coinbase’s control. According to the current BTC exchange rates, the monies owned by the U.S. government are currently valued at around $302 million.

James Zhong, the convicted Silk Road hacker, was the source of the Bitcoins. Federal authorities also seized a collection of precious metals, $661,900 in cash, and roughly 51,351.89785803 bitcoins at the time of his detention.

9,861 Bitcoins were sold by the government for well over $200 million in March of last year. Blockchain parsers and onchain observers both found evidence of onchain activity from four months earlier. According to rumors, Coinbase has sold every Bitcoin that Zhong moved from his stockpile.

It is unusual for the US government to sell BTC through Coinbase since it usually auctions it off with help from US Marshals. For instance, investors like Tim Draper bought some of the bitcoins that were auctioned off after being taken from Ross Ulbricht in the Silk Road case. The government has only lately begun transferring cryptocurrencies to local exchanges.