The U.S. government plans to auction nearly 3,000 bitcoins, still holding over 200,000 BTC.

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US Government to Auction Nearly 3,000 Bitcoins

According to official documents, the US government announced that it will dispose of 2,875 and 59 bitcoins seized from Ryan Farace and Sean Bridges in 2021, respectively, "as directed by the US Attorney General."

Based on the Bitcoin price of $40,140 before the deadline, this amounts to approximately $117 million.

In 2018, the US Department of Justice charged Farace for allegedly selling Xanax illegally on the dark web in exchange for bitcoins, as stated in the indictment.

On January 8, the US Attorney's Office noted that Ryan Farace and his father were sentenced to prison for conspiring to launder money.

Note: Xanax is a sedative and hypnotic drug, classified as a Schedule IV controlled substance in Taiwan, commonly known as "butterfly pills" or "blue elves."

The crypto market may not need to worry about the US authorities' current sell-off, as the Grayscale Bitcoin Trust (GBTC) has seen daily net outflows of almost ten thousand bitcoins since the launch of the Bitcoin spot ETF. Although some analyses suggest the sell-off will continue until March, JPMorgan believes that the selling pressure has already subsided.

JPMorgan: GBTC Outflows Exceed Expectations, Bitcoin Downward Pressure Should Be Over

US Government Holds Over 200,000 Bitcoins

In December last year, a US court confiscated 69,370 bitcoins, along with other cryptocurrencies such as Bitcoin Gold (BTG), Bitcoin SV (BSV), and Bitcoin Cash (BCH).

With this, the US Treasury now holds approximately 215,000 bitcoins, surpassing China's possible seizure of 190,000 bitcoins due to the PlusToken case.

Bitcoin Seized by the US Court! Silk Road Case Bitcoin Confiscated: Nearly 70,000 BTC