US authorities move 19,800 BTC confiscated from Silk Road

The United States carried out a large-scale cryptocurrency transaction, moving nearly 19,800 BTC worth about $ 1.9 billion. These assets were confiscated in 2021 as part of an investigation against James Zhong related to the Silk Road platform.

As you know, James Zhong was convicted of fraud after the authorities found significant amounts of Bitcoin hidden in unusual places, including a popcorn can.

In 2021, the US Department of Justice seized more than 50,000 BTC as part of the case, and the total amount of Bitcoin still under government control is estimated at $ 18 billion.

The purpose of the latest cryptocurrency move has not yet been disclosed. Some experts suggest that these assets may be sold or used for government purposes.

Proposals for the use of confiscated bitcoins are being actively discussed. For example, Senator Cynthia Lummis has proposed creating a national Bitcoin reserve. This idea received a new impetus after President-elect Donald Trump’s statements about his interest in the strategic use of cryptocurrencies.

At the same time, calls for the pardon of Ross Ulbricht, the founder of Silk Road, who is serving a life sentence, are growing.

It is expected that the Trump administration may consider the issue of pardon in the context of his election promises.

It is worth adding that the movement of a large volume of Bitcoin traditionally attracts the attention of traders and can affect market volatility.

However, for now, the cryptocurrency community is closely monitoring further actions of the US government, which may signal its plans in the field of digital assets.

Last year in July, the US authorities moved bitcoins previously confiscated from Silk Road. In several transactions, government-affiliated wallets transferred more than 9,824 BTC. Also in March 2023, the US government sold 9861 BTC for $ 215 million. This was only a fraction of the confiscated assets that remained at that time. The authorities planned to liquidate the cryptocurrency in four batches during the year.