21:05 ▪ 3 min read ▪ Written by Eddie S.
The US government recently transferred approximately $2 billion worth of Bitcoin seized during an investigation into the notorious online black market Silk Road. The operation caught the attention of cryptocurrency sector watchers as it is one of the most significant Bitcoin movements carried out by US authorities.
Following the closure of the Silk Road platform and the arrest of its founder Ross Ulbricht, U.S. authorities stepped up efforts to locate and confiscate funds related to its activities. These funds, obtained as a result of seizures made as part of this investigation, had been confiscated from James Zorn, the person accused of exploiting a flaw in the system to steal this Bitcoin on the platform. .
Zhong pleaded guilty to computer fraud charges in 2022. The seized BTC was originally worth about $3.36 billion at the time of seizure, but due to market fluctuations, it is now worth nearly $2 billion.
This transfer had an immediate impact on the cryptocurrency market. BTC price fell more than 2% in an hour and is currently trading around $95,476. This volatility shows how big fluctuations in Bitcoin can affect the market.
Mike Novogratz, a cryptocurrency entrepreneur and CEO of Galaxy Digital, criticized the timing of the move. He noted that the federal government frequently moves seized bitcoins between different wallets and custodians, but these movements do not necessarily indicate an intention to liquidate them. However, the uncertainty surrounding these movements can result in significant price fluctuations.
In summary, the US government's transfer of $2 billion in seized Bitcoin from the Silk Road not only caused a temporary price drop, but also raised questions about the future control of digital assets by authorities. President Trump’s promise to create a BTC strategic reserve could mark a turning point in government policy towards cryptocurrencies.
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Eddie S.
Adapt to society and live a safe life to survive in universities around the world. Community managers manage the underlying cryptocurrencies and work on blockchain and its development. Passionately consider experience and fair management in the domain, article information and how to terminate the contract.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
