HomeNewsThe U.S. Government Has Over $4.4B in Bitcoin It Could Dump Anytime

The U.S. Government Has Over $4.4B in Bitcoin It Could Dump Anytime

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The U.S. Government Has Over $4.4B in Bitcoin It Could Dump Anytime

Key Takeaways

  • The DOJ announced this day that it seized 50,676.17 BTC from a Silk Road exploiter in November 2021.
  • The haul is designed to be some of the greatest in DOJ history.
  • The U.S. authorities are for the time being designed to be some of the greatest Bitcoin whales and own over 214,046 BTC at minimum.
The U.S. Government Has Over $4.4B in Bitcoin It Could Dump Anytime
PHOTO CREDIT: hurriyet.com.tr

Over the past few years, U.S. Government has become designed to be some of the greatest Bitcoin whale fairs by seizing illegally obtained funds. Finally, this can presumably quiz to liquidate these funds by private auctions.

Over 50,000 BTC Seized

The United States authorities own a limitless amount of Bitcoin.

This day, the Division of Justice (DOJ) announced that it seized a small over 50,676.17 BTC (payment of roughly $1 billion at this day’s prices) in November 2021 from a Bitcoin dealer named James Zhong. Zhong obtained the sum by defrauding the darknet market Silk Road by exploiting the platform’s withdrawal mechanism in September 2012; he pleaded guilty to one depend of wire fraud last week, on November 4, 2022.

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The DOJ publicized the confiscation as a $3.36 billion haul, which, whereas gorgeous at the time of the enforcement breeze, fails to contain into consideration that Bitcoin is now down 69% from its all-time high. Nonetheless, the seizure is famous—it’s the third greatest in cryptocurrency history by Crypto Briefing’s depend—especially pondering the volume of Bitcoin the U.S. authorities already has below its preserve watch over.

Over $4.43 Billion in Bitcoin

As well as the 50,676 BTC seized from Zhong, the U.S. authorities have already obtained at least 163,370 BTC throughout the last two years, for a colossal complete of 214,046 BTC, or about $4.43 billion, minimal.

In November 2020, the DOJ captured 69,370 BTC (payment of over $1.4 billion this day) from one other Silk Road user, publicized as “Person X” by the division. At the time, this used to be the network’s fourth-greatest Bitcoin contend with; the seizure officially made the U.S. authorities design to be some of the greatest Bitcoin whales on this planet.

The company also seized over 94,000 BTC from Heather “Razzlekhan” Morgan and Ilya Lichtenstein, claiming the couple used to be conspiring to launder proceeds from the crypto exchange Bitfinex’s impolite hack in 2016. The sum, payment of $3.6 billion on the time, is now paying over $1.9 billion.

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Proudly owning 214,046 BTC makes the U.S. authorities an enormously big Bitcoin whale. Per BitInfoCharts, the simplest BTC wallet—labeled as Binance’s cool storage wallet—comprises a higher sum, 252,597 BTC, and these funds most no doubt belong to Binance customers, no longer the exchange itself.

Seeking out the greatest BTC wallets doesn’t give the fat description, nonetheless, as whales are seeming to divide their holdings between a bunch of wallets. For instance, Satoshi Nakamoto, the nameless creator of Bitcoin, owns extra than 1.1 million BTC, but the volume is ruined up between 22,000 totally different wallets.

Is the U.S. authorities the greatest Bitcoin whale apart from Satoshi? It’s tough to notify, nonetheless it no doubt holds extra than Bitcoin’s greatest public recommendation, Michael Saylor. Thru his software program company, Microstrategy, Saylor used to be in a do to fetch over 130,000 BTC over the course of the past two years.

Subject for Bitcoin Holders?

In most cases, the U.S. authorities liquidate its Bitcoin holdings through the U.S. Marshalls Carrier through public auctions. For instance, Venture Capitalist Tim Draper famously sold 30,000 BTC from the authorities in 2014 for about $18.5 million—or approximately $616 per coin. Perchance, the BTC seized by the DOJ will seemingly be equally supplied to the general public.

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Currently, the DOJ has tried to time its auctions in step with market gyrations to promote its holdings for the very top designate seemingly. In November 2021, it auctioned off a $56 million payment of cryptocurrencies seized from a BitConnect promoter, efficiently liquidating the holdings at the height of the bull market.

Whether the company will uncover the persistence to await Bitcoin to upward thrust again ahead of promoting its holdings is yet to be considered. To this point, it has restrained itself from liquidating the proceeds from the Person X and Razzlekhan confiscations.

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