The USMS has the option to sell the Silk Road Bitcoin that has been seized after the funds are transferred to new addresses in accordance with the Coinbase agreement.
According to industry professionals, the US Marshal Service (USMS) intends to market all remaining Silk Road Bitcoin (BTC) following the transfer of confiscated funds to new addresses.
In its capacity as the entity responsible for managing sequestered assets, the USMS, which effectively represents the US government, may be acting under political influence.
A finance lawyer named Scott Johnsson is of the opinion that the United States Marshal Service is “most certainly” peddling Silk Road Bitcoin. As stipulated in the June servicing agreement between the USMS and Coinbase, this theory is the result of a sequence of BTC transfers to a custodial address.
Johnsson observed that the agreement mandates that USMS assets be maintained in perfect segregation. Further fueling speculation that the government intends to liquidate the seized Bitcoin shortly, the movement of these funds is consistent with the terms.
“USMS has either sold or is in the process of selling whenever a transfer is ultimately made to Coinbase Prime (or another commingled exchange address),” Johnsson disclosed.
Johnsson is of the opinion that the USMS will disclose the transactions at its discretion, potentially in the DOJ’s FY2024 report. After Trump’s appearance at the Bitcoin 2024 Conference in Nashville, he also observes a political aspect, positing that the transactions accelerated.
The establishment of a “Strategic Bitcoin Reserve” and the cessation of government-owned BTC transactions were among Trump’s notable proposals. There are numerous individuals who believe that Trump’s prospects would have been enhanced had he maintained his intentions confidential until he could have assumed office.
“My administration will maintain full ownership of all Bitcoin that the United States government currently possesses or acquires in the future. In effect, this will function as the hub of the strategic national cryptocurrency stockpile. You have forfeited it,” Trump declared.
A few crypto enthusiasts are optimistic about the possibility of a Trump administration. A government-held Bitcoin reserve is a source of concern for some, such as former Goldman Sachs executive Raoul Pal.
Pal emphasized the government’s history of abuse of power during an interview with Anthony Scaramucci, the founder of SkyBridge Capital. This raised concerns about the potential impact of a reserve on Bitcoin. According to critics, the decentralized principles that underpin Bitcoin may be incompatible with centralized control. They are concerned that this action may compromise the original concept of cryptocurrency.
Also Read: ZachXBT Notices a $238M Bitcoin Transfer from a Possible Accused Person
Wallets