The U.S. government recently transferred about $2 billion worth of seized Bitcoin linked to the Silk Road marketplace to a new address, causing the price of Bitcoin to drop and raising concerns among investors. This move comes just two days after presidential hopeful Donald Trump promised to maintain control over seized Bitcoin if he were to be reelected.
The transferred Bitcoin, totaling roughly 28,000 BTC, was moved from a wallet belonging to the United States Department of Justice. This action has sparked speculation about whether the U.S. government plans to sell the assets. The price of Bitcoin initially fell below $67,000 after the transfer, but has since slightly recovered.
Silk Road, a now-defunct dark web marketplace, was infamous for enabling the purchase of illegal goods such as weapons, narcotics, and stolen credit card information. Its creator, Ross Ulbricht, was arrested in 2013 and is currently serving two life sentences without parole.
The recent Bitcoin transfer by the U.S. government follows Trump’s proposal to create a national “strategic Bitcoin stockpile” and refrain from selling confiscated crypto assets. Prior to the transfer, the U.S. government was reportedly holding a significant amount of Bitcoin, making it one of the largest Bitcoin owners in the world.
The movement of the seized Bitcoin from the Silk Road comes as a surprise to many investors and has led to speculation about the government’s intentions. The impact of this transfer on the crypto market and the future plans of the U.S. government regarding its Bitcoin holdings remain uncertain.
