The complexity of the relationship between the White House and Bitcoin has deepened following a startling revelation ten days ago that shook the crypto community. The US government, despite having sold thousands of Bitcoins earlier this year, is now one of the largest holders of BTC with an estimated $7 billion, or around 200,000 Bitcoins.
A strategic crypto turn for Washington?
The astonishing accumulation of Bitcoin by the US administration is no accident. Despite major BTC liquidations earlier in the year, the state was able to amass a fortune. Most of these Bitcoins were seized from cybercriminals and from darknet transactions.
These digital assets are meticulously preserved offline, in an ultra-secure electronic vaults, under the watchful eye of agencies such as the Department of Justice and the IRS.
According to a report from Wall Street Journal of October 15, the origin of this $5 billion treasure comes mainly from three seizures: Bitfinex hacking, intervention on the Silk Road market and other recent actions.
Nevertheless, the real treasure could be even greater, which prompts reflection on the government’s future designs towards Bitcoin.
After the end of Silk Road in 2013, the government took care to secure the seized Bitcoins. Examples include the 69,000 BTC seized from Ross Ulbricht, the initiator of Silk Road, and the 50,676 BTC confiscated from a Georgian hacker.
Faced with the rise of cryptocurrencies, the U.S. Marshals has revised its liquidation method. Previously, auctions were held, such as the one won by Tim Draper for 30,000 Bitcoins in 2014.
The meteoric rise in the price of Bitcoin, from $600 at the time of the Bitfinex hack in 2016 to $44,000 at the time of the monumental seizure of 95,000 BTC in 2021 by the Department of Justice, testifies to the major evolution in financial stakes.
Journaliste chez Coinpri, j’ai été captivé par l’univers du bitcoin et de la blockchain dès 2020. L’aspect décentralisé du Bitcoin a particulièrement éveillé mon intérêt. Depuis lors, je m’emploie constamment à diffuser mes connaissances, espérant voir un jour un monde où chacun profite pleinement de sa liberté financière.
