The U.S. government conducted a high-profile bitcoin transfer on Monday, moving nearly 58,742 bitcoins (worth about $4 million) from a government-controlled wallet to the cryptocurrency exchange Coinbase.
There are reports that the US government will transfer confiscated Bitcoin to Coinbase, which may be another government preparation for Bitcoin liquidation after the German state of Saxony.
Amount of assets involved and review of events
The funds for this transfer are believed to have originated from the case of Ryan Farace, a Maryland resident who was convicted in 2018 for illegally selling Alprazolam, a drug similar to Xanax, on the dark web.
According to data from blockchain analysis firm Arkham Intelligence, the bitcoins were originally stored in an address marked "U.S. Government: Ryan Farace Seized Funds."
Ryan Farace’s father, Joseph Farace, was also allegedly convicted of money laundering and selling proceeds from the sale of Bitcoin, which was originally intended for federal forfeiture, and the U.S. Department of Justice announced plans to liquidate the assets in January 2021 after recovering 2,933 Bitcoins from the Faraces.
Ryan Farace was sentenced to 54 months in prison, while his father was sentenced to 19 months for the same offence.
Could the US Government’s Bitcoin Liquidation Create Another Market Squeeze?
Although the transfer of this batch of Bitcoin may attract market attention, it is nothing compared to the recent sale of large amounts of Bitcoin in the German state of Saxony. According to data tracked by blockchain analysis company Arkham Intelligence, the amount of funds cleared by the U.S. government through Coinbase on Monday was about $4 million, accounting for only about 1% of Bitcoin’s daily trading volume, so some believe that this move is unlikely. Have a significant impact on spot market prices.
The German state of Saxony began selling bitcoins seized from the movie piracy website movie2k on June 19. As of July 12, nearly 50,000 bitcoins had been sold, earning about $2.87 billion. This was a profit of more than $740 million compared to the cost of the confiscation in January. However, this large-scale sale brought great pressure to the market, causing the price of bitcoin to fall below $55,000.
Although the U.S. government's bitcoin transfer may not have a significant impact on market prices, this action still shows the government's ability to manage and dispose of cryptocurrency assets. This also reminds investors that government actions can sometimes become one of the factors affecting the cryptocurrency market. #比特币清算 #暗网案资金清算 #美国政府
Conclusion:
The U.S. government liquidated the Bitcoin confiscated in the Ryan Farace case and transferred the assets to Coinbase, which not only reflects the legal sanctions against dark web crimes, but also tests market sentiment and stability.
While the transfer was relatively small and unlikely to cause major market moves, it highlights the influence of governments in the cryptocurrency market.
Investors should remain vigilant and realize that government actions may become a key factor affecting the market. As the market continues to develop and supervision gradually improves, we look forward to a more mature and standardized cryptocurrency investment environment.
