May 29, 2024
US Govt's $118M Bitcoin Sale 'Peanuts' Compared to GBTC
Bitcoin News

US Govt’s $118M Bitcoin Sale ‘Peanuts’ Compared to GBTC

The U.S. government’s plan to sell approximately $118 million worth of seized Silk Road Bitcoin ($BTC) is not causing concern among market commentators. The forfeiture notice on January 10 revealed the intention to dispose of 2,934 BTC following the sentencing of Silk Road Xanax dealer Ryan Farace and his father Joseph Farace for money laundering conspiracy.

While some expressed worries about a potential Bitcoin “dump,” Steven Lubka of Swan Bitcoin dismissed concerns, stating the sale would be insignificant compared to recent outflows from the Grayscale Bitcoin Trust (GBTC), which sold 106,575 BTC worth $4.2 billion since its conversion to a spot Bitcoin exchange-traded fund on January 11.

Lubka emphasized that the planned government sale is just 1.5% of the total estimated 194,188 BTC ($7.7 billion) it holds from three criminal seizures, constituting less than 1% of Bitcoin’s circulating supply. The U.S. government holds Bitcoin from three seizures: 94,643 BTC seized in January 2022 from the 2016 Bitfinex hack, 69,369 BTC seized in November 2020 from the Silk Road, and 51,326 BTC seized from Silk Road hacker James Zhong. About 41,000 BTC was scheduled for sale in four transactions throughout 2023.

The U.S. government has historically auctioned Bitcoin, with the most notable instance being venture capitalist Tim Draper’s purchase of nearly 30,000 BTC in 2014. More recently, the government has opted to sell seized crypto on exchanges rather than through auctions, with the last known sale of 9,118 BTC occurring in March 2023.

Photo by Karolina Grabowska

Related posts

Block, Led by Jack Dorsey, Reports 90% Surge in Bitcoin Gross Profits

Kevin Wilson

Bitcoiners Flood El Salvador’s Cold Wallet with Donations

Eva Moore

Bitcoin Mixers Facilitate Movement of $300M in Stolen Crypto in 2023

Kevin Wilson

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.