Author: Jessy, Golden Finance
On the morning of January 9, as the market was declining, major cryptocurrency media reported a bearish news, stating that "the U.S. Department of Justice approved the sale of $6.5 billion worth of Silk Road bitcoins seized from the dark web." After this news broke, the price of bitcoin fell below $94,000.
When it rains, it pours. The circle is filled with endless wails. However, after verifying this news, Golden Finance found that the credibility of the source is low, and the reporter could not find any official confirmation from the U.S. Department of Justice. Even if the news is true, based on past procedures for the Department of Justice selling confiscated bitcoins, the department would basically not be able to sell these bitcoins in the short term, that is, before Trump takes office, and Trump has promised that during his presidency, the U.S. will not sell any bitcoins.
In summary, the U.S. Department of Justice will not actually sell coins at this stage, and it will not put selling pressure on the market.
There is only one source of information.
According to reports from major cryptocurrency media, the source of the news is linked to a post from a personal blogger on X.
This account belongs to a cryptocurrency news media, but the media requires a fee to browse its website, and the membership fee is not low.
Based on the above information, Golden Finance reporters believe that the credibility of this media is already low, and the brief statement posted on its X account, "the U.S. Department of Justice approved the sale of $6.5 billion worth of Silk Road bitcoins," does not specify a concrete source and cannot be verified.
Even if it is true news, the Department of Justice cannot sell the bitcoins it holds in the short term.
Golden Finance reviewed the previous process of the U.S. Department of Justice selling its confiscated bitcoins and found that even if this news is true, the department would basically be unable to sell the bitcoins it holds before Trump takes office.
The bitcoins confiscated by the U.S. Department of Justice are generally auctioned by the U.S. Marshals Service, rather than sold directly over-the-counter or through exchanges. This is similar to how the judicial department auctions off seized properties and assets for profit and then pays into the national treasury.
Taking the auction process of the U.S. Marshals Service in 2020 as an example, approximately 4,040 bitcoins were auctioned, involving various federal criminal, civil, and administrative cases.
At that time, the news about the U.S. Marshals Service auctioning these bitcoins was released on February 3, 2020, and it required potential bidders to complete registration before February 12, while the auction was held on February 18.
According to the specific sales terms published by the U.S. Marshals Service at that time, the winning bidder should prepare to wire the purchase funds to USMS by February 19, 2020. USMS will not transfer any bitcoins until it confirms receipt of the buyer's purchase funds.
From the time the news is released to when the auction actually takes place, and the auctioneer actually receives the bitcoins, it may take more than half a month.
Currently, there are only 11 days left until Trump takes office, and Golden Finance reporters did not find any recent news regarding the auction of confiscated bitcoins on the official website of the U.S. Marshals Service.
It can be seen that, at least before Trump takes office, the U.S. Department of Justice will not actually sell the Silk Road bitcoins it has confiscated.
In summary, the widely circulated news this morning, which affected the market, stating that "the U.S. Department of Justice approved the sale of $6.5 billion worth of Silk Road bitcoins," is likely false.
