U.S. Shifts Seized $1.9 Billion in Bitcoin to Coinbase Wallet
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The U.S. government has transferred Bitcoin worth $1.9 billion to Coinbase Prime, as blockchain data from Arkham Intelligence revealed.
This significant transaction, involving nearly 19,800 BTC, stems from cryptocurrency confiscated in 2021 during an investigation into James Zhong’s Silk Road-related activities. Zhong was convicted of wire fraud after authorities uncovered Bitcoin stored in unusual hiding spots, such as a popcorn tin.
The Department of Justice previously announced seizing over 50,000 BTC from Zhong, with the government still retaining an estimated $18 billion in Bitcoin. While the purpose of the latest transfer remains unclear, some speculate it could signal a plan to sell or repurpose the funds.
Proposals like Senator Cynthia Lummis’ idea of a national Bitcoin reserve have also gained attention, especially with President-elect Donald Trump expressing interest in strategic crypto measures.
Coinbase Prime has partnered with the U.S. Marshals Service to manage cryptocurrencies linked to asset seizures, part of the broader enforcement landscape. Meanwhile, calls to pardon Ross Ulbricht, Silk Road’s founder serving a life sentence, have intensified, with Trump facing renewed pressure to act after his campaign promises.
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