US Authorities Allegedly Transfer 9,861 BTC to Coinbase

Blockchain data has shown unexpected Bitcoin transactions from US authorities, sparking rumors of a potential BTC sale.

US Authorities Allegedly Transfer 9,861 BTC to Coinbase

According to blockchain analytics firm Glassnode, wallets associated with US government crypto seizures have moved approximately 40,000 BTC since mid-February.

While most of these transactions involved moving Bitcoin between wallets, Glassnode claims it has detected a significant transfer of 9,861 BTC to Coinbase, worth nearly $214 million.

The purpose of these transactions remains unclear, as does whether the Bitcoin sent to Coinbase has been sold.

Historically, the US has seized substantial amounts of cryptocurrency in connection with fraud and cybercrime cases. In 2013, the FBI dismantled the Silk Road dark web marketplace and confiscated 144,000 BTC.

In February 2022, the US Department of Justice announced the recovery of 94,000 BTC related to the 2016 Bitfinex hack. By November of the same year, US authorities seized an additional 50,000 BTC from an individual alleged to have attacked Silk Road.

The US has previously held auctions to sell seized BTC, but direct transfers to exchanges are unprecedented. This news is causing a stir in the crypto community on Twitter, especially given the sensitive timing with Mt. Gox—a major whale holding 144,000 BTC—preparing to begin the process of returning funds to investors after 10 years.

As of March 8, Bitcoin’s price has continued to decline, reaching its lowest point since February. The largest cryptocurrency has been impacted by recent news of Silvergate Bank's crisis and comments about potential interest rate hikes by the Fed Chairman on March 7.

1h Price Chart of BTC/USDT on Binance as of 01:55 PM on March 8, 2023