Silk Road bitcoin for sale? Addresses linked to the US government transfer $1 billion in BTC

50,000 Bitcoin (BTC) worth $1 billion were moved and transferred to new addresses from multiple wallets related to US government seizures, and some were moved to Coinbase on March 8.

According to data shared by on-chain analytics firm PackShield, there were three transfers from US law enforcement wallets. These wallets contained almost 51,000 BTC, which was seized by US authorities on the Silk Road marketplace in November 2021. The seized BTC were grouped into two wallet addresses: bc1q5s…0ch and bc1q2ra…cx7.

Silk Road Bitcoin has moved to three different addresses. Source: Twitter

Of these three dislocations, most appear to be internal dislocations. However, approximately 9,861 BTC was sent to Coinbase. The other two transfers include a 30,000 BTC transfer to an address beginning with bc1q… and a 9,000 BTC transfer to an address beginning with bc1qe7…

Silk Road BTC sent to Coinbase. Source: Glassnode

Silk Road was an online black market and the first modern dark web market. It was launched in 2011 by its American founder Ross Ulbricht under the pseudonym “Dread Pirate Roberts”. The marketplace was one of the first in its day to accept bitcoin payments and even popularized the use of crypto. US law enforcement seized several of its founder’s items, including hoards of BTC that were auctioned off from time to time and as early as 2014.

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Popular Bitcoin proponent Tim Draper bought almost 30,000 BTC at one of these auctions in 2014. Another auction for 50,000 BTC took place in October 2015, where US Marshall Services auctioned 21 blocks of 2,000 BTC and one block of 2,341 BTC in an online auction.

While only a small portion of the 50,000 BTC was sent to Coinbase, the movement of billions worth of BTC from wallets linked to US law enforcement agencies prompted wild reactions and even wilder theories. One user pointed out that if US authorities decided to sell their Silk Road Bitcoin, it would create significant selling pressure on the market. At the same time, some others questioned the timing of the sale.

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