A significant amount of Bitcoin, valued at around $2 billion, associated with James Zhong, a figure linked to the notorious Silk Road scandal, has been transferred to a new digital wallet. Zhong, convicted in 2022 for wire fraud related to the now-defunct Silk Road online marketplace, had previously siphoned over 50,000 Bitcoin from the platform in 2012.

On April 2, it was observed that a wallet connected to the United States Department of Justice (DOJ) conducted a transaction, moving a small portion of Bitcoin to a Coinbase Prime address, likely for testing purposes, before transferring 30,174 BTC, equivalent to roughly $2 billion, to a new wallet. This DOJ wallet holds Bitcoin seized from Zhong during a 2021 raid on his premises, where various hard wallets containing Bitcoin were discovered, including one concealed under blankets in a popcorn tin.

Last month, U.S. officials announced the sale of approximately 9,861 Bitcoin from Zhong's large stash, generating over $215 million. This left the DOJ with around 40,000 Bitcoin before the April 2 transaction, coinciding with a more than 7% decrease in Bitcoin's value, dropping to $65,475 at the time.

Silk Road, shut down over a decade ago, was notorious for facilitating illicit transactions, including the sale of weapons, drugs, and stolen credit card details. Its founder, Ross Ulbricht, was arrested by U.S. authorities in 2013 and is currently serving two life sentences without the possibility of parole.