US Government Moves $1.9B Worth Of BTC To Coinbase

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As a seasoned crypto investor with over a decade of experience in this volatile market, I find myself both intrigued and cautiously optimistic about the recent news of the US government moving 19,800 BTC worth $1.92 billion to Coinbase Prime. My first thought is that this could potentially signal a shift in the government’s stance towards Bitcoin, perhaps hinting at a more crypto-friendly future under the incoming Trump administration.

As reported by blockchain company Arkham Intelligence, the U.S. authorities are said to have transferred approximately $1.9 billion in seized Bitcoins (BTC) to the digital asset platform, Coinbase Prime.

The action is being taken as discussions intensify regarding the potential creation of a strategic Bitcoin reserve within the U.S., under the approaching Trump presidency.

US Shifts Seized BTC 

In 2021, an investigation into James Zhong’s activities linked to Silk Road uncovered approximately 19,800 BTC that were later seized. Zhong was found guilty of wire fraud and authorities discovered hidden Bitcoins belonging to him. Previously, the Department of Justice had taken control of more than 50,000 BTC from Zhong, equating to around $18 billion in value. It’s uncertain why this additional transfer occurred, but there are theories that the government may either sell the Bitcoin or reallocate the ill-gotten funds.

“JUST IN: US Government moves $1.92 billion worth of #Bitcoin to a new address.”

The transferred funds were sent to two wallets, each containing $969 million and $949 million in BTC respectively. The government still holds over $18 billion worth of BTC. The transfer of BTC comes with many expecting President-elect Donald Trump to make significant headway on a Bitcoin reserve bill early in his second term. However, Coinbase Prime has partnered with the US government to manage crypto assets linked to seizures and part of the broader enforcement landscape. Meanwhile, calls to pardon Silk Road founder Ross Ulbricht have intensified, with Trump facing renewed pressure to act on his campaign promises. 

Trump’s Crypto Plans 

The proposed decision may significantly influence Donald Trump’s endeavors to set up a tactical Bitcoin reserve, as he previously pledged not to liquidate any of the nation’s Bitcoin holdings. This year, US Senator Cynthia Lummis presented the BITCOIN Act with the aim of establishing such a strategic reserve. It’s worth noting that the United States isn’t alone in this endeavor; Poland has seen a presidential candidate make a similar commitment to establish a reserve, and Brazil is also considering the creation of a sovereign Bitcoin reserve.

BTC’s Stunning Month 

Bitcoin experienced a remarkable surge in November, soaring by nearly 40% towards $100,000. However, its advance halted right before reaching that milestone, with the price dropping from a peak of $99,655 on November 23rd. The recent rise in Bitcoin has been fueled by various factors such as Donald Trump’s election win, optimism about a definite regulatory structure, and an administration perceived to be favorable towards cryptocurrency. Trump also hinted at keeping the Securities and Exchange Commission (SEC) in check, and it is anticipated that he will replace the current SEC Chair, Gary Gensler, with someone supportive of crypto after his term ends.

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2024-12-03 18:05