The Wall Street Journal‘s recent article reveals that the US government controls Bitcoin (BTC), which is worth 5 billion dollars. This significant cryptocurrency fortune has been obtained as a result of the government’s operations to prevent cyber crimes and illegal online activities.
The US Government’s Bitcoin Assets
The large amount of Bitcoin under the control of the US government is the result of a series of high-profile operations against cybercrime activities and darknet platforms. An important example can be seen in the seizure of a significant amount of Bitcoin by the US Department of Justice as a result of an operation targeting Bitfinex that lasted for about six years.
Furthermore, a high-profile operation following the closure of the online drug market Silk Road in 2013 also led to the US government seizing a large amount of BTC.
In addition to the lawsuits filed against Ilya Lichtenstein and his wife Heather Morgan, a series of operations targeting individuals and organizations associated with cybercrimes have increased the amount of BTC under the control of the US government. All of these actions, detailed by The Wall Street Journal, represent only the tip of the iceberg in terms of the BTC amount controlled by the US federal government. The US government has increased its BTC holdings in many other operations as well.
According to The Wall Street Journal, the US government currently controls BTC worth 5 billion dollars. The BTC held by MicroStrategy, the closest competitor to the US government, is currently worth 4.26 billion dollars.
How Does the US Government Sell BTC Assets?
Furthermore, after the seizure of BTC obtained from illegal sources through operations, a meticulous legal process begins, which can sometimes last for several years. For example, the legal process initiated regarding the hack attack targeting the cryptocurrency exchange Bitfinex lasted for about six years, and a significant amount of BTC was brought under control in an operation carried out under the instruction of the US Department of Justice.
After all legal procedures are completed, the responsibility for liquidating the seized BTC is transferred to the US Marshals Service. The preferred first strategy for the liquidation of BTC is to organize public auctions, which have proven to be profitable for buyers like Tim Draper in the past. BTC under the control of the US government is sold through these organized auctions.
