US Government Transfers Seized Bitcoin Worth Millions
The United States has begun transferring some of its seized Bitcoin, following Germany’s recent record-breaking sale of seized cryptocurrency. On Monday, the U.S. government moved nearly $4 million worth of Bitcoin, equivalent to 58.742 BTC, to an unlabeled wallet, as per data from Arkham Intelligence. The original wallet has since been emptied, raising questions about the government’s intentions with the transferred funds.
It remains unclear whether the U.S. government plans to sell the Bitcoin or is simply reallocating its assets by transferring the cryptocurrency to an unidentified wallet. The seized funds originated from Ryan Farace, convicted in 2028 for selling Xanax pills on dark web platforms like Silk Road under the alias Xanaxman. Farace forfeited 24 BTC at the time, claiming he could no longer access additional funds linked to his illegal activities.
While serving his sentence, Farace was indicted for instructing his father, Joseph Farace, to transfer 2,874 Bitcoin to move them out of the country. The U.S. Department of Justice successfully recovered 2,933 BTC from the Farace family and announced plans to sell the seized Bitcoin earlier this year.
The recent transfer represents a fraction of the total amount seized from the Faraces, specifically the 58.742155166 Bitcoin referenced in a DOJ press release from January. The U.S. government currently holds approximately $15 billion in cryptocurrency, with nearly $14.6 billion in Bitcoin alone.
Decrypt reached out to Arkham and the Department of Justice for further details on the Bitcoin transfer but had not received immediate responses. This move by the U.S. government underscores the ongoing efforts to manage and potentially liquidate seized cryptocurrency assets.
