Around $2 billion worth of Bitcoin (BTC) that was previously confiscated 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 moved 30,174 BTC, equivalent to roughly $2 billion at the time, to a different address. Online investigators identified the DOJ wallet as the one containing Bitcoin seized from James Zhong, who was convicted in 2022 for acquiring crypto from Silk Road through illegal means.
In 2012, Zhong stole over 50,000 BTC from Silk Road. In 2021, U.S. authorities raided his property and discovered hard wallets containing Bitcoin, including one hidden in a popcorn tin under blankets. The majority of the seized crypto was sent to the address that carried out the 30,000 BTC transfer 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 as the price of Bitcoin dropped by over 7%, reaching $65,475 at the time.
The Silk Road marketplace, which has been inactive for over a decade, allowed users to trade illegal 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 parole.
This is an ongoing story, and additional information will be provided as it becomes available.