The United States government has moved Bitcoin valued at over $1.9 billion, confiscated during the Silk Road investigation, to a Coinbase Prime wallet. 

This transfer, documented on December 2nd, involved approximately 19,800 Bitcoin, as reported by blockchain analytics firm Arkham Intelligence.

The Bitcoin was originally seized in 2021 following an investigation into James Zhong, who was later convicted of wire fraud linked to the now-defunct Silk Road marketplace. 

In 2022, the Department of Justice revealed it had recovered over 50,000 Bitcoin from Zhong, some of which was hidden in unconventional locations, such as a “single-board computer” inside a popcorn tin. 

While portions of the confiscated Bitcoin have been moved across various wallets, the government still holds significant reserves, estimated at around $18 billion.

The motive for the latest transfer remains unclear, though some speculate it could be part of a broader strategy to liquidate or manage the assets. 

Discussions about the potential creation of a "strategic Bitcoin reserve" have also gained traction, with figures like Senator Cynthia Lummis and President-elect Donald Trump advocating for such initiatives.

Earlier this year, the US Marshals Service partnered with Coinbase Prime to handle the custody of Bitcoin and cryptocurrencies acquired through asset forfeitures. 

Meanwhile, Coinbase continues to face regulatory scrutiny, including a civil lawsuit filed by the Securities and Exchange Commission in mid-2023.

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