The U.S. government has moved $240 million worth of Bitcoin (BTC), originally seized from Silk Road vendor Banmeet Singh, to a Coinbase Prime address. This move follows the U.S. Department of Justice's seizure of over 50,000 BTC from the illicit Silk Road marketplace in late 2021. The U.S. government holds large quantities of Bitcoin acquired through seizures and asset forfeitures, currently possessing 213,546 BTC, valued at approximately $13.07 billion.

The recent transfer had an immediate impact on the cryptocurrency market, with BTC prices dropping below $60,800. Despite this, the market remains optimistic. Coinbase Prime, the platform used for this latest transaction, has become the preferred vehicle for government liquidations. However, it has faced regulatory scrutiny from the SEC, which charged the exchange with operating an unregistered securities platform and acting as an unlicensed broker-dealer. Coinbase is contesting these allegations in court.