On the morning of January 9, as the market was declining, major cryptocurrency media reported a negative piece of news stating that ‘The U.S. Department of Justice has approved the sale of $6.5 billion in seized Silk Road bitcoins.’ Upon the release of this news, bitcoin promptly fell below $94,000.
When it rains, it pours, and there are constant laments within the circle. However, after verifying this news, Golden Finance found that the source of the information is not highly credible, and reporters did not find official confirmation from the U.S. Department of Justice. Even if the news is true, based on past procedures for the Justice Department selling seized bitcoins, it is basically impossible for the Department to sell these bitcoins in the short term, just 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 the coins at this stage, and it will not bring selling pressure to the market.
There is only one source of information.
According to reports from major cryptocurrency media, the sources linked to the information are all messages published by a personal blogger on X.
Image source: Golden Finance
This account is primarily a cryptocurrency news media outlet, but access to its website requires a subscription fee, which is not low.
Image source: Golden Finance
Based on the information above, Golden Finance reporters believe that the credibility of the media is already low, and the short message posted on their X account stating ‘The U.S. Department of Justice has approved the sale of $6.5 billion in seized Silk Road bitcoins’ does not specify a concrete source and therefore cannot be verified.
Even if it is true news, the Justice Department cannot sell the bitcoins in their possession in the short term.
Golden Finance reviewed and organized the process of the U.S. Department of Justice selling its seized bitcoins previously and found that even if this news is true, the Department is unlikely to sell its bitcoins before Trump takes office.
The bitcoins seized by the U.S. Department of Justice are generally auctioned by the U.S. Marshals Service, rather than sold directly OTC or through exchanges. This is similar to how the Justice Department auctions off seized properties like houses and collectibles for profit to then remit to the treasury.
Taking the 2020 auction process by the U.S. Marshals Service as an example, the auction involved approximately 4,040 bitcoins, which were related to 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, requiring potential bidders to register by February 12, and the auction was to be held on February 18.
Image source: Golden Finance
According to the specific sales terms announced by the U.S. Marshals Service at the time, successful bidders should be prepared to wire the purchase funds to USMS on February 19, 2020, and USMS will not transfer any bitcoins until it confirms receipt of the buyer's purchase funds.
This means that from the release of the news to the actual auction, and the auctioneer actually receiving the bitcoins, it may take more than half a month before they are sold on the market.
At present, there are only 11 days left until Trump takes office, and Golden Finance reporters did not find recent news about the auctioning of seized bitcoins on the U.S. Marshals Service official website.
It can be seen that before Trump took office, the U.S. Department of Justice would not actually sell the bitcoins seized from the Silk Road.
In summary, the widely spread news this morning, which has affected the market, ‘The U.S. Department of Justice has approved the sale of $6.5 billion in seized Silk Road bitcoins,’ is likely false.
This article is reprinted with permission from: (ForesightNews)
Original author: Jessy, Golden Finance
‘It is rumored that the U.S. Department of Justice has been approved to sell bitcoins! Chinese media checks: how credible is this news?’ This article was first published in ‘Crypto City’
