The US Department of Justice (DOJ) has made a significant move in the world of cryptocurrency by relocating over $2 billion worth of Bitcoin (BTC) seized from the Silk Road darknet marketplace to a new wallet. This transfer included a preliminary test transaction of 0.001 BTC to a Coinbase Prime address, followed by the movement of 30,174 BTC to a new address.
The Bitcoin in question was part of a larger cache obtained from James Zhong, who illegally acquired over 50,000 BTC from Silk Road. Zhong was found guilty of stealing these assets and was convicted in 2022 after a raid on his property uncovered hard wallets hidden in unconventional places, such as a popcorn tin.
Silk Road was an online black market that operated between 2011 and 2013, allowing users to anonymously buy and sell illegal goods, including drugs, weapons, and fake documents. The mastermind behind Silk Road, Ross Ulbricht, was arrested in 2013 and is currently serving a life sentence without parole.
The government had previously liquidated a portion of the seized Bitcoin, selling about 9,861 BTC in March 2023 for over $215 million. Approximately 40,000 BTC from the Silk Road seizure remain untouched. This recent relocation of assets highlights US authorities’ efforts to manage and potentially monetize assets obtained from criminal enterprises, shedding light on the ongoing saga of Silk Road even years after its closure.
In a similar move, two US Government wallets recently transferred around $1 billion in BTC seized from the Bitfinex hack in February. This demonstrates the government’s increasing involvement in the cryptocurrency space and its efforts to combat illegal activities within the industry.
