- Silk Road Bitcoin worth $2 billion was moved by the U.S. government, according to on-chain data
- The last confirmed government sale of Silk Road Bitcoin was just over a year ago
- The article includes disclosure information about CoinDesk’s ownership and editorial policies
On April 2nd, 2024, a large amount of bitcoin associated with the now-defunct dark web marketplace Silk Road was moved by the U.S. government. Approximately $2 billion worth of bitcoin linked to the Silk Road was transferred from a government-controlled wallet according to on-chain data. This movement of funds is notable given the notorious history of Silk Road and the U.S. government’s seizure of bitcoin from the site.
Details on the Bitcoin Transfer
The bitcoin transfer was first reported by the blockchain analytics firm Elliptic. The bitcoins were moved from a wallet that had been dormant for over a year. The wallet is believed to belong to the U.S. Department of Justice (DOJ) which originally seized the bitcoins during its takedown of Silk Road in 2013. In total, the DOJ seized around 50,000 bitcoins from Silk Road which were auctioned off in subsequent years. However, a sizable amount has remained under government control.
The recent transfer of $2 billion worth of bitcoin from the DOJ wallet could indicate an impending sale of the assets. The last confirmed government sale of Silk Road bitcoin took place in January 2023 when 5,000 bitcoins were auctioned.
Background on Silk Road and Seized Bitcoin
Silk Road was a major dark web marketplace that facilitated the sale of illegal drugs and services using bitcoin as payment. The site was launched in 2011 and soon became a hub of criminal activity before being shut down by the FBI in 2013. As part of its closure of Silk Road, the FBI seized 144,000 bitcoins which were controlled by the site’s founder Ross Ulbricht.
Following Ulbricht’s conviction in 2015, the DOJ took control of the seized bitcoin and began periodically auctioning them off. To date, the DOJ has sold over 130,000 bitcoins reaped from Silk Road. The auctions have netted the government over $1 billion in revenue. However, thousands of bitcoins have remained in a DOJ wallet rather than being immediately auctioned. The recent movement of $2 billion worth of bitcoin indicates that the government still controls a significant amount of seized assets.
Conclusion
The U.S. government’s transfer of Silk Road bitcoin highlights its continued control over assets originally confiscated during the takedown of the infamous dark web marketplace. While the implications of this recent bitcoin movement are not yet clear, it could foreshadow another government auction of Silk Road cryptocurrency. The saga surrounding the seized Silk Road bitcoin has been lengthy, and it appears the story still has not reached its conclusion.
