Blockchain analytic firm Arkham Intelligence confirms that the US has moved millions of seized Bitcoin to crypto exchanges.
As Bitcoin’s price breached the $66K resistance level, the king coin is expected to face considerable selling pressure after the US government moved millions of BTC to the crypto exchange.
Arkham Intelligence reported that the US government moved 58.742 BTC valued at $4 million to the renowned crypto exchange Coinbase.
US Government Moves $4M of Bitcoin to Crypto Exchange
Arkham noted that an address named “US government: Ryan Farace Seized Funds” moved BTC to an account ending with …8fJWGEDrh6Pe7hDMaJ6iGfFtaU.The funds were confiscated in 2020 from Ryan Farace, who was sentenced for selling drugs on the dark web.
The law enforcers noted that Farace manufactured and sold alprazolam tablets (Xanax) through the dark marketplace in exchange for BTC. From his dubious scheme, Farace generated 9138 BTC from selling the Xanax pills. In 2018, Farace was arrested and sentenced to 54 months jail term.
Shortly after the arrest, his father, Joseph Farace, in collaboration with other suspects, laundered the proceeds from the sale of illicit drugs through crypto exchanges. The law enforcer arrested Mr Farace for laundering money and received a 19-month imprisonment.
After the arrest of Ryan and his father, the US law enforcers confiscated 2874 Bitcoin from Farace’s Bitcoin scheme. The Department of Justice (DOJ) revealed plans to liquidate hundreds of Bitcoin seized from the Farace money laundering scheme.
Crypto Traders Anticipate Increase in BTC Selling Pressure
Arkham confirmed that the US government had emptied the original wallet holding assets seized from Farace. However, Arkham data shows that the US government holds $14.6 billion worth of crypto assets, with 97% representing BTC.
CoinMarketCap data shows that BTC reacted to the multimillion-dollar transaction made by the US government. As of press 10:07 (UTC), Bitcoin plunged by 0.73% to trade at $66,930 within the last 24 hours.
The transfer of $4 million of crypto represents less than 1% of Bitcoin trading volume, which is $44.4 billion. On-chain data illustrates that transferring $4 billion worth of BTC will have minimal impact on the crypto price.
Even though it’s still unclear whether the US government plans to sell the assets of the crypto community, fear that if the liquidation happens, the price of BTC might shed its value.
On the contrary, the institution’s clients have demonstrated a growing interest in buying the dip, hoping that Bitcoin will bounce back in the coming weeks.
Institutional Clients Take Advantage of Bitcoin Dip
In the past week, the price of BTC witnessed a significant pullback after the German government 50,000 BTC. The German government’s BTC movement ignited heated debates among policymakers.
A statement from a renowned German Bitcoin advocate, Joana Cotar, described the government BTC sell-off as insensible. The policymaker advised the German government to utilize the seized crypto assets as a reserve currency, addressing the inherent risks associated with the conventional financial system.
Rather than selling the seized crypto assets, Cotar developed a strategy to stimulate economic growth in Germany. The legislator advised the German government to establish a comprehensive regulatory framework for digital assets to encourage innovation in the crypto sector.
She believes revising the German crypto regulation will bring innovation to the digital world and attract competent professionals in crypto and blockchain technology. Cotar encouraged the German government to implement friendly policies to become a global leader in crypto.
