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- US Marshal transfers 10,000 Bitcoins to Coinbase Prime, indicating a potential sale.
- US Marshal’s Bitcoin sale strategy follows an agreement with Coinbase established in June.
- Coinbase agreement leads to the movement of $593.5M worth of Silk Road Bitcoin by US Marshal.
Attorney Scott Johnsson has provided insights into the U.S. Marshals Service’s (USMS) actions regarding the Bitcoin seized from the Silk Road case in recent developments. According to Johnsson, a recent transfer of Bitcoin to Coinbase Prime indicates that the USMS is likely preparing to sell these assets.
Yes, US Marshal Service (USMS) is almost certainly selling silk road bitcoin. Joey is right (at least in the present). USMS has been sending BTC to a custodial address required by the terms of the servicing agreement that USMS entered into with Coinbase in June. Given the…
— Scott Johnsson (@SGJohnsson) August 16, 2024
Transfer to Coinbase Prime
Johnsson’s observations are based on the USMS’s agreement with Coinbase, initiated in June this year. The agreement details how seized assets should be handled and suggests that transfers to Coinbase Prime are a prelude to a sale.
On August 14, the blockchain analytics firm Arkham claimed that 10,000 Bitcoins, worth approximately $593.5 million, were moved from a US government wallet to a Coinbase Prime deposit account.
The funds transferred are believed to be related to the Silk Road case in November 2022, when the Department of Justice seized more than 50,000 Bitcoins. US officials hold an estimated 203,239 Bitcoin worth $12.42 billion.
Community Response and Government Actions
The transfer has sparked discussions regarding the intentions behind the US Marshals Service’s (USMS) management of seized assets. Some members question whether the transfer to a commingled address at Coinbase could definitively indicate a sale. In response, Johnsson clarified that while the transfer does not confirm the sale, it highly indicates such actions, especially in light of the agreement requiring USMS assets to be segregated from other funds.
Regulatory and Political Context
The timing of these transfers is noteworthy, coming amidst significant political and regulatory discussions surrounding cryptocurrencies in the U.S. Senate Majority Leader Chuck Schumer has remarked on the bipartisan nature of cryptocurrency regulation, emphasizing the necessity for the U.S. to establish clear guidelines to maintain a competitive edge internationally. These developments suggest a heightened government focus on how cryptocurrencies are handled, secured, and potentially utilized in regulatory frameworks.
Scott Johnsson, a finance lawyer, argues that these transfers indicate asset sales. He points to the agreement’s stipulation that a sale has likely occurred or is imminent once assets are moved to a mixed address like Coinbase Prime.
The DOJ’s Asset Forfeiture Program FY2024 report, expected in January 2025, may confirm these transactions officially. The transfer timing is also notable, shortly after significant political discussions surrounding cryptocurrencies.
Despite the large transfer and ongoing government asset liquidations, Bitcoin’s price has remarkably stabilised. As of August 17, 2024, Bitcoin is trading at approximately $59,310.65, reflecting a modest weekly increase. The implications of these activities will become clearer with the forthcoming DOJ report, which will provide a comprehensive overview of the government’s strategy and its execution regarding seized digital assets.