A notice from the US Department of Justice about the upcoming sale of confiscated bitcoins came after announcements final verdict in the case of Silk Road Xanax dealer Ryan Farace and his 72-year-old father Joseph Farace, who participated in money laundering. The court sentenced the son and father to 54 and 19 months in prison, respectively.
The upcoming massive sale by the US government of confiscated Silk Road assets has raised concerns among some members of the crypto community about a possible surge in panic among Bitcoin holders.
United States government expected to sell $130 million #bitcoin seized from Silk Road.
Uh oh dump incoming? pic.twitter.com/mi99as8GUU
— Layah Heilpern (@LayahHeilpern) January 25, 2024
However, the managing director of the Swan Bitcoin exchange, Steven Lubka, commented that these fears are completely unfounded.
“The upcoming Silk Road asset sales are pennies after the market absorbed more than four times the amount of outflows from the Grayscale Bitcoin Trust over the past week,” he added.
Let us recall that the earlier banking crisis, which erupted in early 2023, forced officials to sell more than 51,000 BTC from funds confiscated in the case of hacking of the “shadow trading platform Silk Road”. Proceeds from the sale of crypto assets were used to maintain the stability of the national financial sector.
Source: Bits
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