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- 1 A wallet that is connected to the wallet listed in the Silk Road files by a single transaction has made a minor transaction.
- 2 Though it’s unclear if it’s true, many have speculated that the U.S. government may be transporting bitcoin that has been seized.
- 3 Coinbase manages the bitcoin used by the US government, and the SEC filed a lawsuit against the exchange.
A Bitcoin transaction was conducted using a wallet linked to James Zhong, who was found guilty of stealing Bitcoin from the now-defunct Silk Road. The disputed wallet sent 1,490 BTC to a change wallet and moved 10 BTC to another wallet.
Strange Movement By Bitcoin
A tiny Bitcoin transaction was performed using a wallet that may be related to another one listed in the forfeiture of money taken from the now-defunct darknet bazaar Silk Road.
According to London-based blockchain analysis company Elliptic, around $1 billion worth of bitcoin with possible connections to the Silk Road online criminal market is currently in motion.
U.S. federal officials shut down Silk Road in 2013, and Ross Ulbricht, the site’s inventor, received a life term two years later. People could sell drugs and other illegal items on the site, which was hidden away in the dark web.
The disputed wallet, starting with “bc1qzd8c..” sent 1,490 BTC to a change wallet while moving 10 BTC to another wallet.
On April 22, 2022, around the time his monies were turned over to the U.S. government, 0.00000547 bitcoin was sent from a wallet connected to James Zhong, who was found guilty of stealing bitcoin from the Silk Road. As part of the same transaction, bitcoin was also sent from other wallets to it.
While Arkham had already linked the wall to the government in a tweet, some crypto analytics services, such as Glassnode, concluded that this meant the bc1qzd8c wallet was also under the authority of the U.S. government and marked the funds as such. Due to today’s alerts that the Silk Road monies were being relocated as a result, the price of Bitcoin fell briefly.
The monies may or may not be in the control of the United States government.
According to Arkham, once the money was sent today, it was subsequently forwarded to further wallets that contained transactions connected to the cryptocurrency exchanges Coinbase and Gemini.
Regarding how Bitcoin was transferred, there are some odd indications. The original transaction sent 0.01 bitcoin at first, but later increased both the fee and the amount transferred by using the replace by fee function. It is a strange practice.
Following the confiscation of more than 50,000 bitcoin connected to the now-defunct marketplace in 2021, the US government is one of the biggest bitcoin whales. Chain-watchers are paying close attention to the holdings, and in the past, transfers have brought about market activity.
According to prior reports from The Block, Coinbase manages the bitcoin used by the US government. The SEC filed a lawsuit against the exchange on June 6 for allegedly operating an unauthorized securities exchange business.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
