Crypto 656

2024/12/07 14:02

The American government transfers 2 billion in BTC

The American government transfers 2 billion in BTC related to Silk Road
After the closure of the Silk Road platform and the arrest of its founder Ross Ulbricht, American authorities intensified their efforts to locate and confiscate funds associated with its activities. These funds, resulting from seizures made as part of this investigation, had been confiscated from James Zhong, an individual accused of having stolen this Bitcoin on the platform by exploiting a flaw in its system.

Zhong pleaded guilty in 2022 to computer fraud charges. The seized BTC, which were originally worth about $3.36 billion at the time of confiscation, are now valued at nearly $2 billion due to market fluctuations.

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An immediate impact on the Bitcoin market
This transfer had an immediate impact on the crypto market. The price of BTC dropped by over 2% in one hour, currently trading around $95,476. This volatility shows how large movements of Bitcoin can influence the market.Mike Novogratz, crypto entrepreneur and CEO of Galaxy Digital, criticized the timing of this transfer. He pointed out that while the federal government frequently moves seized Bitcoins between different wallets and custodians, these transfers do not always signal an intent to liquidate. However, the uncertainty surrounding these movements can lead to significant price fluctuations.

In summary, the transfer of $2 billion in seized Bitcoin from Silk Road by the American government not only caused a temporary drop in prices but also raised questions about the future management of digital assets by authorities. Trump’s promise to create a strategic reserve of BTC could signal a turning point in governmental policy towards cryptos.

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