A substantial amount of Bitcoin, valued at around $2 billion, that was previously confiscated by U.S. authorities in connection with the Silk Road marketplace, has been moved to a new address.
On April 2, blockchain data revealed that a wallet linked to the U.S. Justice Department made a transaction of 0.001 BTC to a Coinbase Prime address, possibly as a test transaction. Shortly after, the same wallet transferred 30,174 BTC, equivalent to roughly $2 billion, to a different address. Internet detectives identified this wallet as the one containing Bitcoin seized from James Zhong, who was convicted in 2022 for illegally obtaining crypto from Silk Road.
Back in 2012, Zhong stole over 50,000 BTC from Silk Road. In 2021, U.S. authorities raided his property and found hard wallets containing Bitcoin, including one that was hidden in a popcorn tin under blankets. The majority of the seized crypto was sent to the same address that executed the 30,000+ BTC transfer on April 2.
In March 2023, government authorities announced the sale of 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 more than 7% to $65,475.
The Silk Road marketplace, which has been inactive for over a decade, facilitated the illegal buying and selling of various items, including 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 additional details will be provided as they become available.