Cryptocurrency investors were spooked as US authorities transferred $1 billion Bitcoin recovered from the Dark Web to Coinbase-owned wallet addresses.
Authorities moved the Bitcoin in three transactions, according to data from Blockchain security firm, PeckShield. Nearly 10,000 Bitcoins were sent to Coinbase-controlled wallets, while roughly 41,000 tokens were directed to government-controlled wallets.
Peckshield published its findings on Twitter, concerning investors that the sale of the recovered tokens in the open market could tank the prices of Bitcoin due to intense pressure to sell. The concerns caused Bitcoin’s price to dip roughly 2 per cent, pushing it to below $22,000.
Seized assets are usually sold through auctions. A similar incident took place in 2014 and 2015, where the government auctioned off Bitcoin seized from the owner of virtual black market platform, Silk Road.
“Although concerns about the tokens’ sale on the open market may be overblown, fears that Bitcoin prices could take a hit are not entirely unjustified,” said Conor Ryder, a researcher at crypto markets analysis firm, Kaiko.
“The movement of Silk Road Bitcoin to Coinbase is almost definitely being done with the intention to sell [the recovered tokens], so one has to wonder if Bitcoin is due for some short-term headwinds,” Ryder told CoinDesk.
Sitharaman Urges IMF For A Globally Co-Ordinated Approach On Crypto
Union Minister of Finance Nirmala Sitharaman held a discussion with International Monetary Fund (IMF) managing director Kristalina Georgieva on March 9, 2023, and called for the global body to set up a co-ordinated approach to regulate crypto assets.
The virtual conversation held to discuss the forthcoming G20 finance ministers and central bank governors’ meeting, is set to take place in Bengaluru later this month.
Sitharaman also thanked the IMF for supporting varied work streams under the G20 FinTrack during India’s Presidency of the G20 Group.
In a series of Tweets, Sitharaman revealed that Georgieva congratulated India on its strong economic performance in such difficult times, and its role in the digitalisation of the economy, especially in the area of digital transactions.
Binance, Coinbase, OKX Unfastened By Silvergate Capital Shutdown
Silvergate has become a controversial topic on Twitter after its downfall.
When news of the company’s liquidation hit the market, all other crypto firms began assuring their community of their conditions. Binance CEO Changpeng Zhao tweeted that the world’s largest cryptocurrency exchange has no asset losses at Silvergate. Funds at the exchange are safe.
“We’re sorry to see Silvergate make the tough decision to wind down their operations. They were a partner and contributor to the growth of the crypto economy. Coinbase has no client or corporate cash at Silvergate. Client funds continue to be safe, accessible, and available,” Coinbase said.
