A legal expert is claiming the US Marshals Service (USMS) is on the brink of selling Bitcoin confiscated from the notorious Silk Road marketplace. The allegation, made by finance lawyer Scott Johnsson, is based on a recent service agreement between the USMS and Coinbase.
According to Johnsson, the agreement stipulates that Bitcoin must be held in a segregated account before being transferred to Coinbase Prime. He argues that a recent transfer of Bitcoin to Coinbase Prime indicates an imminent sale. “Given the agreement requires USMS assets remain completely segregated, whenever a transfer is ultimately made to CB prime (or other commingled exchange address), you can be sure USMS has already sold or is selling imminently,” Johnsson stated.
This theory is supported by a recent onchain transaction that saw nearly $600 million worth of Bitcoin transferred to a Coinbase Prime deposit wallet. Large-scale Bitcoin movements by significant holders can often impact the cryptocurrency’s price.
However, not everyone is convinced. Ryan Lee, chief analyst at Bitget Research, believes the Silk Road Bitcoin is unlikely to be sold despite the recent activity. This conflicting viewpoint underscores the ongoing uncertainty surrounding government-held Bitcoin and its potential market impact.
Adding to the complexity is the political landscape. Former President Donald Trump, a 2024 presidential candidate, has pledged not to sell any government-held Bitcoin if re-elected. This promise contrasts with the potential actions of the current Biden administration.
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The 10,000 Bitcoin transferred on August 15th were part of a larger 50,000 BTC seizure from Silk Road in 2022. This latest movement follows a similar $2 billion Bitcoin transfer in April.
As the situation unfolds, the cryptocurrency community will be watching closely for any official confirmation from the US Marshals Service or the Department of Justice. The potential sale of these seized Bitcoin could have far-reaching implications for the cryptocurrency market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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