US Government Seizes Over $300 Million Worth of Bitcoin Related to Silk Road

Crypto Transactions Worth $299 Million

On July 12, a cryptocurrency wallet associated with the United States Department of Justice (DOJ) moved approximately 9,825.25 Bitcoin worth around $299 million in a series of transactions. It’s unclear whether the transactions, which spread to at least 101 new wallets, were sent to exchange addresses for sale or remain in the custody of the Justice Department.

Initially, two transactions sent 9,825 Bitcoin (BTC) to three addresses at around 1:00 pm UTC. Most of the coins — 8,200 BTC worth nearly $250 million — were sent to one address, which then divided the total amount across 101 separate addresses an hour later.

The U.S. government previously stated that it had plans to sell the rest of its BTC from the Silk Road seizure through four batch transactions during the rest of the calendar year. This includes crypto.com, crypto solana, crypto fraud, crypto com coin, crypto.com reddit, crypto dot com, lucky block crypto, crypto api, crypto.net, fx crypto and other crypto assets.

Crypto Community Worry About U.S. Government’s BTC Transactions

On-chain data suggests that the U.S. government may be trialing liquidity strategies. On March 7, 2023, one account made a profit of $237,934,919 from 30,174.7 BTC not connected to the July 12 batch of transactions. Meanwhile, the DOJ-related account from the same batch sent 9,825.6 BTC to 101 accounts, before joining 599 other accounts to transfer 0.1 BTC (around $3,032 at the time of writing) to another account, which then distributed 51 BTC to 37 addresses.

Due to the sheer number of transactions and wallets involved, it is difficult to determine what the U.S. government is doing with each coin. This has caused some crypto.com users to fear that BTC is being “nuked” or that the government’s actions will affect the cryptocurrency market and cause investors to stop the bull run.

Other crypto enthusiasts have dismissed such commentary as unnecessary fear, uncertainty and doubt based on the lack of tidal movement — more than six hours after the transactions were clocked, BTC has seen less than 1% of market movement.

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