US financial lawyer Scott Johnson said the US Marshals Service (USMS) is almost certainly in the process of selling the bitcoins it seized from the infamous Silk Road market.
Johnson’s claims are based on a services agreement signed between USMS and Coinbase in June. According to Johnson, this agreement indicates that once Bitcoin (BTC) reaches Coinbase Prime, it is a clear sign that USSMS has sold or is looking to sell these assets.
Agreement between USSMS and Coinbase
Johnson explained that the USMS is remitting the Bitcoin to the custodial address in accordance with the terms of the agreement.
“The contract requires that the USMS assets be completely segregated, so whenever a transfer is ultimately made to CB Prime (or other mixed exchange address), it means that the USMS has already been sold or is about to be sold. I can confirm that it will be sold,” Johnson wrote.
Source: Scott Johnson
Formal confirmation of the deal is expected in the Department of Justice’s fiscal year 2024 Asset Forfeiture Program report, expected in January at the latest. Mr. Johnson also hinted at political motivations behind the timing of the sale, suggesting that President Joe Biden’s administration may continue these actions without respite.
contradictory views
But not everyone agrees with Johnson’s interpretation. Bitget Research chief analyst Ryan Lee believes Silk Road Bitcoin is unlikely to be sold off, despite initial concerns.
These disagreements reflect widespread uncertainty and speculation within the crypto community regarding government holdings of Bitcoin and its potential market impact.
Related: US government moves 10,000 Bitcoin
The US government transferred approximately $600 million worth of Bitcoin to Coinbase on August 15, according to on-chain analytics firm Arkham Intelligence. The Bitcoins were transferred to your Coinbase Prime deposit wallet.
Historically, large transactions by significant holders known as “whales” can have a significant impact on Bitcoin’s price. Investors often track these trades to anticipate potential selling pressure.
historical background
The US government is currently geopolitically the largest holder of Bitcoin, a fact highlighted by former President Donald Trump. The issue is further complicated by Trump, the Republican 2024 presidential candidate, who has pledged not to sell any of the U.S. government’s Bitcoin holdings if re-elected.
The recently transferred 10,000 Bitcoins were originally seized during the 2022 Silk Road raid. In that operation, the Department of Justice announced that it had seized 50,000 BTC from the darknet market.
This large-scale on-chain funds transfer follows another large-scale movement in April, when the US government moved $2 billion worth of Bitcoin seized from Silk Road.
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