Scott Johnsson asserts that the USMS’ Bitcoin transactions signal a sell-off.
The lawyer points out a previous agreement between the USMS and Coinbase Prime.
Johnsson states that the move may have accelerated after Donald Trump’s support for Bitcoin.
The US Marshals Service recently moved 10,000 Bitcoins, possibly tied to the Silk Road seizure. This has sparked discussions about whether the government is selling off its Bitcoin. Finance lawyer Scott Johnsson contends these transfers point to an upcoming sale, referencing a previous deal with Coinbase Prime.
Yes, US Marshal Service (USMS) is almost certainly selling silk road bitcoin. Joey is right (at least in the present). USMS has been sending BTC to a custodial address required by the terms of the servicing agreement that USMS entered into with Coinbase in June. Given the…
— Scott Johnsson (@SGJohnsson) August 16, 2024
Highlighting his arguments on the USMS’ Bitcoin activity, Johnsson drew attention to its connection to a previous agreement with the USMS and Coinbase. According to the terms of the agreement that began in June, if the USMS assets are transferred to Coinbase Prime, it implies a sale. Johnsson added that as the USMS assets remained segregated before the BTC shift, the move indicates an already commenced or imminent sale.
Johnsson also pointed out that Coinbase may not be the only possibility here, as an exchange. He explained that moving funds to any mixed exchange address could indicate a sell-off. He even suggested some of the seized Bitcoin might have already been sold.
Further, Johnsson commented that the USMS’ Bitcoin sale might have been accelerated after former President Donald Trump’s massive support for Bitcoin amidst his election campaigns. Additionally, he pinpointed the irony in the move that coincided with Vice President Kamala Harris’ Crypto4Harris event earlier this week. Thus, he indirectly points out the political dimensions of the USMS’s Bitcoin transfer.
In 2022, the Department of Justice (DoJ) announced the historic seizure of more than 50K Bitcoins in connection with the Silk Roasd dark web internet marketplace. Towards the end of July 2024, Arkham Intelligence revealed a mysterious transfer of 29,800 BTC worth close to $2 billion to an address. With more transactions reported, analysts speculated the move’s suspected connection to the seized funds.
Earlier this week, 10,000 Silk Road Bitcoins were reportedly moved from the USMS to Coinbase Prime. As per Johnsson’s estimations, the official confirmation of the transactions will be released by January 2025 in the Department of Justice’s Asset Forfeiture Program FY2024 report.
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