The United States is preparing to liquidate 69,370 BTC, worth $6.5 billion, seized during the Silk Road takedown. This decision, taken a few days before the inauguration of Donald Trump, raises questions about its motivations and its potential impacts on the Bitcoin strategy of the Republican camp.
The United States dumps its BTC before Trump arrives at the White House
Thanks to numerous legal seizures, governments can sometimes acquire significant quantities of Bitcoins. France, for example, has adopted the practice of selling them directly at auction, while other countries prefer to hold these funds for a longer period.
Germany, for example, held more than 50,000 BTC for several years before selling them for around $60,000 each. Likewise, some countries, such as China and the United States, each hold around 200,000 BTC.
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Recently, The United States Department of Justice (DOJ) approved the sale of 69,370 BTC, almost $6.5 billion.
The US Govt has been given the greenlight to liquidate 69,000 BTC ($6.5B) from Silk Road, an official confirmed to DB News today
Interesting situation less than 2 weeks away from the new admin who vowed to not sell https://t.co/HqD1KnhJK3 pic.twitter.com/xn8ATSEL7H
— db (@tier10k) January 9, 2025
Db, an influencer known for revealing news before the majority of media, revealed this information in his latest publication on X. He specifies that the decision to liquidate these BTC, seized during the dismantling of the Silk Road black market, was taken on December 30, 2024.
On the other hand, on-chain analysis reveals that these funds have not yet been moved and still remain at the address managed by the DOJ (bc1qa5wkgaew2dkv56kfvj49j0av5nml45x9ek9hz6) where they were filed in November 2020.
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The DOJ has now held these funds for more than 4 years. The decision to liquidating them only 2 weeks before Donald Trump's inauguration at the White House raises questions within the Bitcoin community as to the motivations behind this choice.
This event has a double symbolism. On the one hand, these funds come from Silk Road, whose founder was sentenced to life imprisonment without the possibility of release in May 2015. And Donald Trump promised to pardon him on his first day in officenotably giving rise to the hashtag #FreeRossDayOne.
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In addition, the sale of these 69,370 BTC risks displeasing within the Republican camp, due to their project to create a strategic reserve in Bitcoin.
In July 2024, Donald Trump included this initiative in his campaign promises, supported by Wyoming Senator Cynthia Lummis, who presented the “Bitcoin Act”. This bill aims to acquire 200,000 BTC over a period of 5 years in order to constitute a strategic reserve of one million Bitcoins.
The approval of such a law is already uncertain, as it would require the United States to invest around $100 billion if the price of Bitcoin remains around $100,000. The Trump camp could thus have considered an alternative by using the thousands of BTC already seized by the DOJ to initiate this strategic reservean option that could void if these funds are liquidated.
Furthermore, some Bitcoiners welcome this decision, believing that the constitution of strategic reserves by States threatens the neutrality of the Bitcoin blockchain. Indeed, it is based on the founding principle of creating a store of value intended for individuals rather than state institutions.
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Source: DOJ Address
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First attracted by the lure of gain, I am now trapped deep into the rabbit hole. With no way out, I just have to share my knowledge and convey the passion I have for Bitcoin. I am also the creator of Adopt a Block, an educational site dedicated to Bitcoin.
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