As a seasoned analyst with over two decades of experience in the legal and financial sectors, I find myself in agreement with Scott Johnsson’s analysis. Given my extensive background in tracking government assets and digital currencies, I can confidently say that the U.S. Marshal Service’s recent transfer of Bitcoin linked to the defunct Silk Road marketplace to a Coinbase address suggests imminent sale. The established servicing agreement between USMS and Coinbase, as well as the timeline for asset liquidation outlined in the DOJ report, further supports this assertion. It’s a matter of when, not if, these Bitcoin will be sold.
Scott Johnsson, who serves as both a general partner and legal counsel at Van Buren Capital, posits that the U.S. government’s action of transferring Bitcoin from the defunct Silk Road marketplace to a Coinbase account suggests that these funds might soon be put up for sale.
In a post dated August 16th on X, a legal expert specializing in finance proposed that it’s quite probable that the U.S. Marshal Service, responsible for liquidating digital assets obtained illegally, might be in the act of auctioning off Bitcoin (BTC) previously confiscated from the Silk Road marketplace.
Indeed, it appears that the U.S. Marshal Service (USMS) is likely transferring Bitcoin from Silk Road to an account. Joey’s assertion seems accurate for now. The USMS has been moving BTC to a specific custodial address, which aligns with the conditions of the service agreement they established with Coinbase in June. This… action is based on the terms and conditions outlined within that agreement.— Scott Johnsson (@SGJohnsson) August 16, 2024
Johnsson was responding to a post from Founders Fund co-founder Joey Krug, who had shared data from Bitcoin explorer Tokenview, showing more than 19,000 BTC that had been moved into a Coinbase account. The lawyer seemed to agree with Krug’s assertion that the coins were the remaining Silk Road stash yet to be sold.
US govt Silk Road coins remaining to be sold:
— Joey Krug (@joeykrug) August 15, 2024
According to data from Arkham Intelligence, the claim made by Johnsson follows shortly after the U.S. government moved around 594 million dollars’ worth of confiscated Bitcoins from the Silk Road to a Coinbase Prime account.
Back in 2013, I found myself on edge when news broke that the Silk Road marketplace, where I’d been investing, had been closed down. Shortly afterwards, its founder, Ross William Ulbricht, was apprehended.
Initially, the administrators of the initial site unveiled a fresh platform called Silk Road 2.0, however, a specialized law enforcement unit managed to shut it down in the year 2014 as well.
Based on Johnsson’s statement, it appears that the U.S. Marshals Service (USMS) has been moving its assets to a designated wallet or account held by Coinbase, following a service contract agreed upon between them back in June.
The lawyer claimed that the agreement requires that USMS assets remain completely segregated, with any transfers to commingled exchange addresses like Coinbase Prime meaning that the agency was likely preparing to sell the BTC assets.
In a recent update, the attorney provided images from a report by the U.S. Department of Justice’s Office of Inspector General. This report indicated that the U.S. Marshals Service’s Complex Assets Unit was expected to sell off assets within five workdays following their seizure.
Johnsson anticipates the official confirmation of the sale could come with the DOJ’s asset forfeiture program fiscal year 2024 report, due in January 2025.
It’s worth mentioning that the USMS decided to get rid of the Bitcoins from Silk Road only after Donald Trump, the former U.S. President and Republican presidential hopeful, had made a pledge in his latest speech not to offload any government-owned Bitcoins if he secures another term.
It is said that the U.S., as a nation, is estimated to possess approximately $12 billion worth of Bitcoin. This makes them the government with the most Bitcoins, a cryptocurrency that currently boasts a total market value of around $1.17 trillion.
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2024-08-18 18:20