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The bitcoins were seized from the Silk Road hacker. The government has plans to sell the remaining BTC in batches over the year.
It looks like the U.S. Department of Justice(DoJ) is finally moving the BTC reserves it seized from the Silk Road. The notorious online marketplace, which was predominantly used for illicit activities and operated using Bitcoin for transactions, was taken down by U.S. authorities in October 2013. Here is what Wu Blockchain tweeted:
"Breaking: The Silk Road BTC-related addresses which are suspected to be seized by the US Department of Justice, are transferring more than 9k BTC. https://oklink.com/btc/address/bc1qmxjefnuy06v345v6vhwpwt05dztztmx4g3y7wp?tab=commonTx
The U.S. government previously sold 9,800 BTC on March 14 and said it plans to sell another 41,500 BTC related to Silk Road in four batches within a year."
In November 2022, the US DoJ seized >50,000 bitcoins from James Zhong – the infamous Silk Road hacker. The transfer was noted across two addresses linked with the DoJ, while the remaining portion of the Bitcoin haul remained untouched. As per Wu Blockchain, the U.S. government plans to sell the remaining bitcoins over the year.
Transactions facing confirmations delays
These transactions faced confirmation delays mainly due to the low transaction fees allocated by the DoJ. The DoJ has made two transactions with a combined $8 in transaction fees. The last time they sold the government sold the seized BTC, they paid over $215,000 in transaction fees, as per court filings. Interestingly, many have noted that by liquidating bitcoin instead of holding on to it, the government has missed out on $5.6 billion. As the practice of seizing cryptocurrencies from illegal activities becomes more common, the financial implications of how and when to sell these assets will become increasingly significant.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.