Possible upcoming Bitcoin sale by US government
The US government has initiated a transaction that suggests it may soon sell a large inventory of Bitcoin seized from Silk Road, an online marketplace. A small test transfer of 0.001 BTC, part of around 30,174 BTC worth $2 billion, was made and tracked to Coinbase, a major US cryptocurrency exchange. Arkham Intelligence reported on the connection of the transfer to the seized Silk Road funds. This pattern is similar to past actions in which the government sold Bitcoin after similar pre-trade transactions.
Review of previous Bitcoin auction by the US government
In March last year, the government auctioned 10,000 Silk Road-related Bitcoins, raising about $216 million. The U.S. Marshals Service, which is responsible for disposing of criminal assets, conducted the sale. Despite debates about maintaining such assets as strategic reserves, the US Marshals Service has sold approximately 195,000 BTC to date. This measure is in line with the authority's mandate to liquidate confiscated assets.