Recent blockchain activity suggests that the US Marshals Service (USMS) may be in the process of liquidating Bitcoin seized from the infamous Silk Road case.
Finance lawyer Scott Johnsson has shed light on the USMS’s recent Bitcoin transfers, connecting them to a servicing agreement with Coinbase signed in June.
USMS moving Bitcoin to a custodial address
According to Johnsson, the USMS has been moving Bitcoin to a custodial address as required by this agreement, which stipulates complete segregation of USMS assets.
The key indicator of an imminent or completed sale, Johnsson notes, is when these funds are transferred to a commingled exchange address, such as Coinbase Prime. This transfer pattern suggests that the USMS is actively liquidating 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
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Interestingly, Johnsson points out that this selling activity intensified following former President Trump’s recent speech. This potentially indicates a political dimension to the timing of these sales.
He also references a Department of Justice Office of Inspector General audit report and certain court orders that may have foreshadowed this move.
While official confirmation of these sales may not come until the DOJ’s Asset Forfeiture Program FY2024 report in January, the blockchain evidence presents a compelling case.
The sale of these seized assets was originally slated for completion by the end of last year, but delays in finalizing the services agreement with Coinbase appear to have pushed the timeline.
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