Thomas Daniels
Scott Johnsson, General Partner and General Counsel at Van Buren Capital, has indicated that the U.S. government’s recent transfer of Bitcoin, associated with the notorious Silk Road marketplace, to a Coinbase address suggests an impending sale of the assets. In an August 16 post on X, Johnsson implied that the U.S. Marshals Service (USMS)—the agency tasked with managing the disposal of forfeited digital assets—may be on the verge of selling Bitcoin seized from Silk Road.
Johnsson’s analysis was a response to a post by Joey Krug, co-founder of Founders Fund, who cited data from Bitcoin explorer Tokenview. The data revealed a transfer of over 19,000 BTC to a Coinbase account, which Krug asserted could represent the remaining Silk Road Bitcoin stash yet to be sold. Johnsson appeared to concur with this assessment.
The speculation follows a significant transfer of approximately $594 million worth of Bitcoin, seized from Silk Road, to a Coinbase Prime address—a move documented by Arkham Intelligence. The transfer is believed to be part of a broader plan under a servicing agreement between the USMS and Coinbase, established in June, which mandates the segregation of assets. Transfers to commingled exchange addresses, such as Coinbase Prime, are seen as a potential precursor to asset liquidation.
Johnsson supported his analysis by referencing a report from the U.S. Department of Justice’s Office of Inspector General, which outlines that the USMS’s Complex Assets Unit must liquidate forfeited assets within five business days. He anticipates that an official confirmation of the sale may be revealed in the DOJ’s asset forfeiture program fiscal year 2024 report, expected in January 2025.
Interestingly, this move by the USMS to potentially sell the Silk Road Bitcoin comes shortly after former U.S. President and current Republican presidential candidate Donald Trump publicly stated that, if re-elected, he would refrain from selling any of the government-held Bitcoin. The U.S. government is reportedly the largest holder of Bitcoin globally, with an estimated $12 billion in BTC, contributing to the cryptocurrency’s total market capitalization of $1.17 trillion.
