Who Controls Seized Bitcoin Now?

The U.S. government made a big move by taking 10,000 bitcoins—worth about $600 million—and sending them to Coinbase Prime. These bitcoins were originally taken from a bad website called Silk Road, which did things that weren’t right.

Who Controls Seized Bitcoin Now?

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• Big Bitcoin Move: The U.S. government shifted 10,000 bitcoins, valued at about $600 million, to Coinbase Prime. These bitcoins were originally taken from the Silk Road.
• Unclear Intentions: Usually, sending bitcoins to an exchange means they might be sold. However, officials suggest this transfer might just be for safe storage.
• Market Reaction: Bitcoin’s price dropped slightly to $59,000 from $61,000 before the transfer, indicating other factors might be involved.

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A company called Arkham Intelligence, which is smart about watching bitcoins, saw this move. People started wondering if the government was going to sell these bitcoins. But the government said they might just be keeping them safe for now.

A group called the U.S. Marshals Service, part of the Department of Justice, is working with Coinbase Prime. They want to keep big digital money like Bitcoin safe and determine what to do with it. But they haven’t told anyone their exact plans yet.

On the same day the bitcoins were moved, their price dropped slightly, from $61,000 to $59,000. This happened before the government moved the bitcoins, so something else must have caused the price drop.

In 2022, the government took over 50,000 bitcoins and caught a person named James Zhong. He had done bad things with Silk Road’s money system in 2012 and said he was guilty.

The U.S. government last sold some bitcoins from Silk Road in March 2023. They sold almost 10,000 bitcoins and got $216 million. They planned to sell more in parts but haven’t said if they’ve done that yet. According to Arkham Intelligence, the U.S. government currently has about $12 billion worth of bitcoins and some other digital money.

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