The US government has been moving around Bitcoin seized from the infamous Silk Road marketplace, and a lawyer believes this is a sign they’re finally selling it.
Bitcoin on the Move
Recently, 10,000 Bitcoin, worth around $593.5 million, were transferred from a US government wallet to Coinbase Prime, a platform used by institutional investors. This follows a June announcement where the US Marshals Service (USMS) partnered with Coinbase Prime to manage their digital assets.
Is It a Sale or a Transfer?
While some believe the government is just moving the Bitcoin for safekeeping, finance lawyer Scott Johnsson thinks otherwise. He argues that the transfer to Coinbase Prime, which uses commingled addresses (where multiple assets are combined), signals an imminent sale.
Johnsson points to government documents that require the rapid liquidation of seized assets within five business days and the use of segregated wallets to prevent mixing funds. He believes the government is likely selling the Bitcoin and will confirm it in their Asset Forfeiture Program report in January.
A Backlog of Bitcoin
Johnsson also acknowledged that there’s been a backlog of seized Bitcoin that was supposed to be sold last year. The delay might be due to the finalization of the services agreement with Coinbase Prime.
Political Implications
This news comes after Republican presidential candidate Donald Trump proposed a national Bitcoin stockpile, and rumors surfaced that Democrats, led by Vice President Kamala Harris, might be selling off government-held Bitcoin.
While Harris has tried to appear pro-crypto, her actions seem to contradict that stance.
What’s Next?
The future of the seized Silk Road Bitcoin remains uncertain. While the government hasn’t officially confirmed a sale, the latest transactions and Johnsson’s analysis suggest it’s a real possibility. We’ll likely have to wait for the Asset Forfeiture Program report in January for definitive answers.
