U.S. finance lawyer Scott Johnsson has suggested that the U.S. Marshals Service (USMS) is likely in the process of selling Bitcoin seized from the infamous Silk Road marketplace. His assertion is based on a service agreement signed between the USMS and Coinbase in June, which implies that when Bitcoin reaches Coinbase Prime, the USMS has either sold or is about to sell these assets.
Johnsson noted that the USMS has been transferring Bitcoin to a custodial address as per the agreement’s terms. He explained, “Given the agreement requires USMS assets to remain completely segregated, whenever a transfer is ultimately made to Coinbase Prime (or another commingled exchange address), you can be sure the USMS has already sold or is selling imminently.”
Formal confirmation of these transactions is anticipated in the Department of Justice’s Asset Forfeiture Program report for the fiscal year 2024, expected in January. Johnsson also hinted that the timing of these sales might be politically motivated, suggesting that the Biden administration could continue these actions without interruption.
However, not all experts agree with Johnsson’s perspective. Ryan Lee, chief analyst at Bitget Research, believes that the Silk Road Bitcoin is unlikely to be sold, reflecting broader uncertainty within the cryptocurrency community about government-held Bitcoin and its potential market impact.
On August 15, Arkham Intelligence, an on-chain analytics firm, reported that the U.S. government transferred nearly $600 million worth of Bitcoin to Coinbase, specifically to a Coinbase Prime deposit wallet. Large transactions by significant holders, often referred to as “whales,” can have a considerable impact on Bitcoin’s price, prompting investors to monitor these movements for potential market shifts.
The U.S. government is currently the largest geopolitical holder of Bitcoin, a fact highlighted by former President Donald Trump. Trump, who is seeking the Republican nomination in the 2024 presidential election, has pledged not to sell any of the U.S. government’s Bitcoin holdings if reelected, adding another layer of complexity to the situation.
The recent transfer of 10,000 Bitcoin is part of a larger seizure of 50,000 BTC from the Silk Road during a 2022 operation. This significant movement of funds follows another major transfer in April when the U.S. government moved $2 billion worth of Bitcoin seized from the same dark web marketplace.
As speculation mounts over the potential sale of Silk Road Bitcoin by the USMS, the cryptocurrency community remains on high alert. The possible sale could have wide-reaching effects on market stability and investor confidence, making it a critical development to watch in the coming months.
