Claims from a U.S. finance lawyer have started speculation about market stability, as rumors grows over the potential sale of Silk Road Bitcoin by the U.S. Marshals Service.
The sale is required by law
United States finance attorney Scott Johnsson raised alarms by suggesting that the U.S. Marshals Service is pretty likely in the process of selling Bitcoin seized from the Silk Road darknet marketplace.
Johnsson bases his opinions on a service agreement that was signed between the USMS and Coinbase in June.
As he shared, this agreement could means that when Bitcoin is transferred to Coinbase Prime, it is either a sign that the USMS has already sold or is on the verge of selling these assets.
Johnsson also explained that the USMS has been sending Bitcoin to a custodial address, adhering to the terms of their agreement with Coinbase.
“Given the agreement requires USMS assets to remain completely segregated, any transfer to Coinbase Prime—or another commingled exchange address—almost certainly means that the USMS has already initiated the sale or is about to do so imminently.”
While formal confirmation of these transactions won’t come until the Department of Justice’s Asset Forfeiture Program report for the fiscal year 2024, expected in next January, Johnsson hinted at possible political motivations driving the timing of these sales.
He speculated that the Biden administration might continue these actions without hesitation.
The situation is complex
As always, not all experts agree with Johnsson’s interpretation. Ryan Lee, the chief analyst at Bitget Research, has cast doubt on the likelihood of the Silk Road Bitcoin being sold.
Then on-chain analytics firm Arkham Intelligence shared, the U.S. government transferred nearly $600 million worth of Bitcoin to Coinbase on August 15.
This substantial transfer was sent to a Coinbase Prime deposit wallet.
The U.S. government is currently the largest government-level holder of Bitcoin, a point emphasized 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 government’s Bitcoin holdings if he returns to office, adding another layer of complexity to the situation.
Not the first move
The 10,000 Bitcoin transferred were part of the assets seized during the Silk Road crackdown in 2022.
In that operation, the Department of Justice confiscated a total of 50,000 BTC from the darknet marketplace.
This latest movement of funds follows another big transfer in April, when the U.S. government moved $2 billion worth of Bitcoin also seized from Silk Road.
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