Key Points
- The US government has reportedly transferred $4 million in Bitcoin to Coinbase.
- Blockchain analytics firm Arkham Intelligence identified the transaction, which is believed to involve seized assets.
The US government has allegedly shifted around $4 million worth of Bitcoin (BTC) to Coinbase. This information comes from a recent report by blockchain analytics company Arkham Intelligence. The firm asserts that the 58.742 BTC transfer originated from an address named US Government: Ryan Farace.
This address is speculated to contain funds seized from Ryan Farace three years ago. In 2018, Farace was convicted for online drug dealing in the US District Court for Maryland. Operating under the alias Xanaxman, he sold Xanax pills on the dark web.
Seized Assets and Potential Liquidation
Joseph Farace, Ryan’s father, was also found guilty of laundering and trafficking Bitcoin proceeds the federal government aimed to confiscate. Despite their sentencing only occurring in early 2021, the Department of Justice managed to recover 2,933 BTC from the pair. After the sentencing, the government announced plans to liquidate holdings.
The recent funds transfer could align with these liquidation plans or could indicate preparation for a potential transfer to a different digital wallet. However, the specific destination of the funds remains ambiguous.
Impact on Bitcoin Price
The funds transfer, while emptying the Ryan Farace account, has not significantly affected the spot price of BTC. This is because the amount moved is less than 1% of Bitcoin’s 24-hour trading volume of over $43 billion. Therefore, unlike Germany’s recent large sale of BTC, the potential liquidation of funds through Coinbase by the US is not expected to greatly impact the BTC price.
It’s also noteworthy that the US government has recently amassed a significant amount of Bitcoin, primarily through legal proceedings including asset seizures from darknet marketplaces and other illicit activities. Currently, the US government holds over 213,000 BTC, valued at over $14 billion. At the time of the report, Bitcoin was trading at $66,533.
