According to a court document filed on March 31, 2023, regarding the sentencing of James Zhong, who stole more than 50,000 bitcoins from the Silk Road exchange, the US government plans to liquidate 41,490 bitcoins “over the course of of this calendar year.
US Government Reveals Strategy for Selling Confiscated Bitcoin
The United States government, one of the largest holders of bitcoin, plans to sell 41,490 BTC in 2023, according to a court filing filed in the James Zhong sentencing case. The government made the historic bitcoin seizure in November 2022 when it seized more than 50,000 BTC of Zhong. The defendant pleaded guilty “to committing wire fraud in September 2012 when he illegally obtained more than 50,000 bitcoins from the Silk Road dark web internet marketplace.”
Bitcoin.com News reported six days ago that, according to Dune Analytics Data and public disclosures, the US government owns 205,515 BTC. In the dossier filed Friday, federal authorities plan to sell at least 41,490 BTC worth $1.17 billion at today’s exchange rates.
The court document states: “Regarding the 51,351.89785803 bitcoins seized in the Ulbricht case before Judge Schofield, the government has begun to liquidate (sell) them. On March 14, 2023, the government sold 9,861,1707894 BTC (from 51,351.89785803 BTC) for a total of $215,738,154.98.”
According to the on-chain analysis firm Glassnode, the sale of 9,861 BTC was detected, or at least the period of time it was submitted to a major exchange before the sale. “Of the bitcoins seized in the Ulbricht case, approximately 41,490.72 remain. BTCthat the government expects to liquidate in four more lots in the course of this calendar year,” the presentation adds.
The Glassnode account of the chain transfer explains that the funds were likely sent to Coinbase. If the funds were to be sold on Coinbase, it would be different from the US government’s previous auction style of selling seized crypto assets. When the government sells the 41,490 BTCwill still have 164,025 BTCor $4.65 billion, remaining.
What do you think of the US government’s decision to liquidate its seized bitcoin? Share your thoughts in the comments section below.
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