The US government currently holds 200,000 Bitcoin (BTC), acquired through its actions against cybercrime and illicit online activities. However, he seems not to be eager to sell this colossal treasure.
The origin of this fortune in Bitcoin
The value of these US government BTC holdings is more than $5.5 billion at current Bitcoin prices. Renowned for his repressive policy towards the crypto industry through the SEC, Uncle Sam is still among the largest holders of Bitcoin.
He obtained his Bitcoin tokens through seizures during cybercrime operations. These seizures were made as part of law enforcement and the fight against illegal online activities. The American government thus keeps these acquired Bitcoins. Which makes him one of the largest holders of this crypto in the world.
However, the government is in no hurry to sell them because the liquidation process involves lengthy investigations and complex legal procedures. This Bitcoin reserve can therefore increase in value over time.
Jarod Koopman explains that the US government does not hold onto its Bitcoins for the purpose of speculating on the price. He keeps them because the legal sales process takes a long time. This is due to the complex investigations and procedures. It is therefore not deliberately waiting for a price rise, but rather is constrained by its own legal process.
How will the government sell these tokens?
Once the government decides to liquidate its Bitcoins, the US Marshals Service will handle this operation. Originally, liquidation was carried out through public auction. But more recently, this process uses crypto exchanges such as Coinbase.
The US Marshals Service’s approach allows Bitcoins to be sold in a more discreet and distributed manner. This is to avoid a negative impact on the market. Indeed, a sum of $5 billion could exert strong downward pressure on the market. Which would likely cause the asset to fall.
Funds from the sale are then used to cover the costs of investigations. Or, they are distributed to victims, in accordance with the court decision.
Although Uncle Sam is not holding these Bitcoins for speculative purposes, the value of this treasure could still increase. Indeed, Spot Bitcoin EFTs have a 90% chance of progressing according to recent forecasts. If BTC reaches $250,000 before liquidation, these holdings could reach a value of $50 billion.
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