U.S. Government Transfers $4 Million in Seized Bitcoin to Coinbase

TLDR

• The U.S. government transferred 58.742 Bitcoin (worth about $4 million) to Coinbase on July 22, 2024.
• This Bitcoin was seized from Ryan Farace, convicted of selling Xanax on the dark web.
• The U.S. government still holds about $14.6 billion worth of cryptocurrency.
• Germany recently sold nearly 50,000 Bitcoin for $2.9 billion.
• These government sales and transfers of seized cryptocurrency are happening amid fluctuations in the crypto market.

On July 22, 2024, the United States government transferred 58.742 Bitcoin, worth approximately $4 million, to a Coinbase account. This move has caught the attention of the cryptocurrency community and market watchers.

The Bitcoin in question was originally seized from Ryan Farace, who was convicted in 2018 for selling Xanax pills on dark web marketplaces like Silk Road. Farace, known online as “Xanaxman,” initially forfeited 24 Bitcoin.

However, while serving his prison sentence, he was indicted again for attempting to move 2,874 Bitcoin out of the country with the help of his father, Joseph Farace.

In January 2024, the U.S. Department of Justice (DOJ) announced that it had successfully recovered 2,933 Bitcoin from the Farace family and planned to sell the seized cryptocurrency.

The recent transfer to Coinbase represents a small portion of this total amount, but it matches exactly the 58.742 Bitcoin mentioned in a DOJ press release from January as being seized on May 11, 2021.

This transfer emptied the wallet labeled “U.S. Government: Ryan Farace Seized Funds” on blockchain analytics platform Arkham Intelligence.

Arkham Intelligence

However, the U.S. government still holds a substantial amount of cryptocurrency, estimated at about $14.6 billion. The majority of this is in Bitcoin, with smaller amounts in Ethereum, Tether, and other cryptocurrencies.

The U.S. government’s move comes shortly after Germany announced a major sale of seized Bitcoin. The state of Saxony in Germany sold approximately 49,800 Bitcoin between June 19 and July 12, 2024, netting about $2.9 billion in what was described as an “unprecedented” sale.

The German Bitcoin came from an investigation into individuals accused of running piracy websites and money laundering.

These government sales and transfers of seized cryptocurrency are happening at a time when the crypto market is experiencing some fluctuations. The price of Bitcoin was around $66,874 at the time of the U.S. government’s transfer, showing a slight decrease of 0.51% over the previous 24 hours.

It’s worth noting that while $4 million worth of Bitcoin is a significant amount, it represents less than 1% of the total Bitcoin trading volume, which was about $46 billion in the 24 hours surrounding the transfer. This suggests that the government’s move is unlikely to have a major impact on Bitcoin’s price by itself.

The U.S. government’s handling of seized cryptocurrency assets is being closely watched by market participants. As one of the largest Bitcoin holders in the world, any moves the government makes with its crypto holdings can attract attention and speculation about potential market effects.

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