The US government Bitcoin wallets are reported to be on the move, selling 9,819 BTC worth $264 million from their holdings.
These assets apparently originated from the seizure of James Zhong’s funds, who stole BTC from Silk Road in September 2012.
This would not be the first time the US government has held a sale of seized Bitcoin.
After law enforcement shut down Silk Road in 2013, it seized 173,991 BTC while pursuing the case, including 144,336 from a wallet belonging to Ross Ulbricht, the marketplace creator. The US government sold all those coins in four auctions in 2014 and 2015.
The current estimated Bitcoin balance of the US government is about 200,000 BTC worth just under $5.5 billion, accounting for about 1% of Bitcoin’s circulating supply.
Bitcoin reacted negatively to the rumors, instantly collapsing below the $28,000 threshold.
