Coinbase receives 240m worth of Bitcoin from the US in Silk Road transfer

Bitcoin experienced a 2% decline following the U.S. government’s transfer of 3,940 Bitcoin, valued at $240 million, to a Coinbase Prime Address. The cryptocurrency was originally confiscated from Banmeet Singh, a Silk Road vendor and narcotics dealer, during a trial in January. Silk Road, a dark web marketplace created by Ross Ulbricht in 2011, was shut down by the FBI in 2013. Since then, U.S. authorities have seized around 50,000 BTC from the platform on multiple occasions. The recent movement of funds to Coinbase sparked speculation about selling, causing a modest decrease in the overall cryptocurrency market, including Bitcoin. In March 2023, the U.S. government sold $216 million worth of BTC on Coinbase Prime. Despite facing scrutiny and legal challenges, Coinbase remains the preferred platform for government liquidations. The Securities and Exchange Commission (SEC) charged Coinbase with operating an unregistered securities exchange and unlicensed broker-dealer, but the company denied the allegations and accused the SEC of lacking clear regulations for the crypto industry. Meanwhile, Coinbase continues to cater to the U.S. government’s demand for selling BTC, while facing competition in the global rankings.