According to a court filing in the case of James Zhong’s sentencing, the United States government, one of the top holders of bitcoin, intends to sell 41,490 BTC in 2023. The government made a landmark bitcoin raid in November 2022, seizing over 50,000 BTC from Zhong.
According to Dune Analytics statistics and public filings, the US government owns 205,515 BTC, according to news six days ago. According to the petition, government officials intend to sell at least 41,490 Bitcoin worth $1.17 billion at today’s exchange rates.
“The government has begun liquidation (selling) the 51,351.89785803 bitcoin forfeited in the Ulbricht case before Judge Schofield,” according to the court record. On March 14, 2023, the government sold 9,861.1707894 BTC (of the 51,351.89785803 BTC) for a total of $215,738,154.98.”
Glassnode, a onchain analytics startup, discovered the sale of 9,861 BTC, or at least the period of time when it was transmitted to a large exchange prior to selling. “Of the bitcoin forfeited in the Ulbricht case, approximately 41,490.72 BTC remain, which the government expects to sell in four additional batches throughout the course of this calendar year,” the filing continues.
If the cash were sold on Coinbase, it would be a departure from the United States government’s traditional auction method of selling stolen crypto assets. The government will still have 164,025 BTC, or $4.65 billion, after selling the 41,490 BTC.
