According to PeckShield, a blockchain security company, 49,000 Bitcoin (CRYPTO: BTC) worth $1.08 billion have been transferred from addresses related to the U.S. government. Some of the BTC was originally seized from the Silk Road hacker.

The report revealed that 9,826 BTC worth $217 million were transferred to Coinbase Global Inc (NASDAQ:COIN), while two new addresses received 39,175 BTC worth $867 million. Glassnode, an on-chain data provider, confirmed this report, stating that the majority of the transfers appear to be internal.

#PeckShieldAlert 49k $BTC (worth $1 Billion) from wallets related to US Government law enforcement seizures have been transferred to #Coinbase (~9.8k $BTC, worth $217M), bc1qf2…fsv (30k $BTC) & bc1qe7…rdg (9k $BTC) #SilkRoad pic.twitter.com/4MzlvDzkut

— PeckShieldAlert (@PeckShieldAlert) March 8, 2023

While it is not uncommon for government agencies to hold cryptocurrencies, the sudden transfer of such a large amount of Bitcoin has raised eyebrows and sparked speculation about the reasons behind the move.

Also read: Bitcoin Liquidity Unaffected By Silvergate Fiasco, But Market Depth Remains Low

The Silk Road was a black market closed by the FBI in 2013, and the seized Bitcoin was auctioned off in 2014.

The reason for the current transfer of Bitcoin to the Coinbase cluster remains unclear, and analysts and crypto enthusiasts are trying to make sense of the situation.

Interestingly, the transfer of these Bitcoin comes at a time when the cryptocurrency market is facing selling pressure, with Bitcoin dropping below a critical area of support between $23,050 and $23,730, where 1.63 million addresses bought over 910,000 Bitcoin.

As of now, it remains unclear what the U.S. government plans to do with its Bitcoin holdings or whether there will be further transfers in the future.

Next: Bitcoin, Ethereum, Solana And Shiba Inu Drop: Major Reasons For Growing Fear In Crypto