US finance attorney Scott Johnsson states that the US Marshals Service (USMS) is most likely selling Bitcoin from the notorious Silk Road bazaar.
The USMS and Coinbase inked a service agreement in June, which serves as the foundation for Johnsson’s claims. Johnsson asserts that this arrangement, if true, could have a significant impact on the cryptocurrency market, as the USMS may have either sold or is preparing to sell these assets once Bitcoin reaches 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
US Govt selling Bitcoin?
On Wednesday, August 14, the US government’s subsequent transfer of Bitcoin, first taken from the infamous Silk Road, generated a lot of speculative activity. Yesterday, Coinbase Prime, a platform mostly utilized by institutional investors, received 10,000 Silk Road Bitcoins, worth around $593.5 million, according to research released by blockchain analytics company Arkham.
The US Marshals Service (USMS), a division of the Department of Justice, announced in June that it had partnered with Coinbase Prime to offer custody and sophisticated trading capabilities for the agency’s “Class 1” (big cap) digital assets. This transaction follows that statement. The community is divided on whether these actions indicate the sale of Bitcoin or are just a transfer for custody. Many thus conjectured that the US government is not selling.
Arkham’s X post stated that Coinbase Prime now has 10,000 Silk Road BTC (worth $593,5M). Two weeks ago, the well-known US government wallet sent 10K BTC to wallet bc1ql. This Bitcoin was recently sent to Coinbase Prime deposit wallet 33J.
However, managing partner at Van Buren Capital and finance lawyer Scott Johnsson offered a different perspective today, contending that the deal represents the final sale of the US government’s confiscated assets. Johnsson said:
“Yes, US Marshal Service (USMS) is almost certainly selling Silk Road Bitcoin […] USMS has been sending BTC to a custodial address required by the terms of the servicing agreement […] Given the agreement requires USMS assets remain completely segregated, whenever a transfer is ultimately made to CB prime (or other commingled exchange address), you can be sure USMS has already sold or is selling imminently.”
USMS transfers Bitcoin to a custodial address.
Johnsson claims that by this agreement, which calls for total segregation of USMS assets, the USMS has transferred Bitcoin to a custodial address.
Johnsson points out that the transfer of these funds to a commingled exchange account, like Coinbase Prime, is a crucial sign of an impending or finalized transaction. This transfer trend suggests that the USMS is actively selling off its Bitcoin holdings.
Not necessarily CB alone (there's an interim segregated custody step), but once they hit commingled addresses it's reasonable to infer they're sold. And yea, there was a backlog of forfeited BTC that was supposed to be sold already. Finalizing the services agreement appears to…
— Scott Johnsson (@SGJohnsson) August 16, 2024
It’s interesting to note that Johnsson notes that this selling activity increased after former President Trump’s recent address. This suggests that the timing of these purchases may have political overtones.
He cites several court orders and an audit report from the Department of Justice Office of Inspector General that may have predicted this action.
The post Lawyer Says US Marshals May Be Selling Silk Road Bitcoin Through Coinbase appeared first on Coinfomania.
