U.S. finance attorney Scott Johnsson has suggested that Bitcoins confiscated from the notorious Silk Road marketplace are likely being sold by the U.S. Marshals Service (USMS). His statements are based on a service deal struck between the USMS and Coinbase earlier this year. If Bitcoin reaches Coinbase Prime, this signifies that the USMS is about to sell or has already sold these assets, says Johnsson. Official confirmation of these transactions is anticipated in the Department of Justice’s Asset Forfeiture Program report, due in early 2024.
Johnsson’s assertions are not universally accepted. Ryan Lee, head analyst at Bitget Research, thinks that the Silk Road Bitcoin will probably not be sold. This dispute illustrates the broader uncertainties and speculations circulating within the crypto community about government-held Bitcoin and its prospective market impact.
According to Arkham Intelligence, an onchain analytics company, the U.S. government moved approximately $600 million worth of Bitcoin to Coinbase in mid-August. Large transactions by major holders, or “whales,” can considerably influence Bitcoin’s price. Thus, investors closely monitor such transactions to predict possible selling pressure.
Adding to the intrigue is the fact that the U.S. government is currently the world’s largest geopolitical holder of Bitcoin. Former President Donald Trump, now the Republican Party’s prospective 2024 presidential candidate, has vowed not to sell any of the government’s Bitcoin holdings if reelected. Notably, the 10,000 Bitcoin recently moved were initially seized in a 2022 Silk Road raid, a significant action that followed a major transfer in April when the government moved $2 billion worth of Bitcoin confiscated from Silk Road.