Approximately $2 billion worth of Bitcoin (BTC), which was previously seized by United States authorities in connection to the Silk Road marketplace, has been transferred to a new address.
According to blockchain data on April 2, a wallet linked to the U.S. Justice Department conducted a 0.001 BTC transaction to a Coinbase Prime address, possibly as a test transaction. Shortly after, the same wallet transferred 30,174 BTC, equivalent to approximately $2 billion at the time, to a new address. Online investigators identified this wallet as the one that contained Bitcoin confiscated from James Zhong, who was convicted in 2022 for charges related to illegally obtained cryptocurrency from Silk Road.
In 2012, Zhong stole over 50,000 BTC from Silk Road. In 2021, during a raid on his property, U.S. authorities found hard wallets containing Bitcoin, including one that was hidden in a popcorn tin under blankets. The majority of the seized cryptocurrency was sent to the same address that conducted the 30,000+ BTC transaction on April 2.
In March 2023, U.S. government authorities announced that they had sold approximately 9,861 BTC seized from Zhong for over $215 million, leaving around 40,000 BTC. The April 2 transaction occurred after the price of Bitcoin dropped by over 7% and reached $65,475 at the time.
The Silk Road marketplace, which has been inactive for over a decade, allowed users to buy and sell illicit goods such as weapons, drugs, and stolen credit card information. Its creator, Ross Ulbricht, was arrested by U.S. authorities in 2013 and is currently serving two life sentences without the possibility of parole.
Please note that this is an ongoing story, and more information will be provided as it becomes available.