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Experts believe that the US Marshal Service (USMS) plans to sell all remaining Silk Road Bitcoin (BTC) after transferring the confiscated funds to new addresses.
As the entity responsible for managing seized assets, the USMS ā effectively representing the US government ā may be taking action under political influence.
Scott Johnsson, a finance lawyer, believes the US Marshal Service is āmost certainlyā selling Silk Road Bitcoin. This speculation arises after a series of BTC transfers to a custodial address, as outlined in the June servicing agreement between the USMS and Coinbase.
Johnsson noted that, per the agreement, USMS assets must remain fully segregated. The movement of these funds aligns with the terms, further fueling speculation that the government intends to liquidate the seized Bitcoin soon.
āWhenever a transfer is ultimately made to Coinbase Prime (or other commingled exchange address), you can be sure USMS has already sold or is selling imminently,ā Johnsson shared.
Read more:Ā How To Buy Bitcoin (BTC) and Everything You Need To Know
Johnsson believes the USMS will reveal the sales at its chosen time, possibly in the DOJās FY2024 report. He also notes a political angle, suggesting the transactions accelerated after Trumpās Bitcoin 2024 Conference appearance in Nashville.
Among Trumpās key points were creating a āStrategic Bitcoin Reserveā and halting government-owned BTC sales. Many believe Trumpās chances could have been better if he had kept his intentions private until potentially taking office.
āIt will be the policy of my administrationā¦to keep 100% of all the Bitcoin the US government currently holds or acquires into the future. This will serve in effect as the core of the strategic national bitcoin stockpileā¦Itās been taken away from you,ā Trump said.
Read more:Ā Crypto Regulation: What Are the Benefits and Drawbacks?
Some crypto proponents are optimistic about a potential Trump administration. Others, like former Goldman Sachs executive Raoul Pal, have concerns over a government-held Bitcoin reserve.
Speaking with SkyBridge Capital founder Anthony Scaramucci, Pal highlighted the governmentās history of abusing power, raising doubts about what such a reserve could mean for Bitcoin. Critics argue that centralized control could conflict with the decentralized principles Bitcoin was built on. They worry this move might undermine the original vision of cryptocurrency.
āYes, itās good for the crypto market because thereās yet another buyer. However, it is also weird because Bitcoin was set up to try to replace the governmentās control over money, and now you are inserting the government as one of the largest buyers of private money. I donāt like that ā¦If the government can manipulate it, they could dump it onto the market. They could buy more, and before you know it, theyāre using it like they are interest rates in controlling regular money, and we donāt want that,ā Pal expressed.
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