US government transfers 4,000 BTC to Coinbase

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A crypto wallet known to be controlled by the US government recently transferred around 3,940 Bitcoin (BTC), worth $241 million to Coinbase, according to data from Arkham Intelligence. The wallet currently holds around $13,3 billion worth of Bitcoin.

The wallet’s Bitcoin stash is tied to the seizure of Bitcoin from the Silk Road, an infamous online marketplace on the dark web, dealing in illegal drugs, weapons, and other illicit goods. Silk Road was shut down in 2013.

Earlier in April, the government allegedly transferred 30,175 BTC, worth approximately $2 billion, from the same wallet to Coinbase.

The transaction was split into three transfers, starting with a small test transfer of 0.001 BTC ($65) to a Coinbase Prime deposit address, followed by the main transfer of 1,999 BTC (around $130 million) to Coinbase. The remaining 28,176 BTC was sent to another government-controlled wallet, likely as part of a planned sale.

Bitcoin’s bearish momentum, which has been building since earlier this week, could be exacerbated by recent large-scale transfers.

On Monday, the trustee of Mt. Gox, the defunct exchange, said it would start its $9 billion repayment plan next month. Victims will receive payouts in Bitcoin and Bitcoin Cash, potentially increasing selling pressure in the market.

Pressure intensified after the German government transferred 400 BTC to Coinbase and Kraken yesterday, with an additional 500 BTC moved to an untagged address.

Those moves have drawn significant attention from the crypto community, with speculation about the government’s strategy for managing and selling its Bitcoin holdings.

Bitcoin experienced a slight dip following the latest transfer, hitting a low of $60,800 before recovering to around $61,000, per CoinGecko’s data.

This is a developing story: We’ll give updates on the situation as we learn more.

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