The bitcoin sold is part of the 50,000 BTC seized in November following the arrest of James Zhong, who pleaded guilty to wire fraud after the government alleged he manipulated the transaction system on darknet market Silk Road in 2012. At the time, the government hailed it as the largest cryptocurrency seizure.
The government intends to liquidate the remaining 41,490 bitcoins in four tranches over the course of this calendar year, the filing said.
Crypto traders were spooked after seeing U.S. authorities transfer over $200 million worth of bitcoin to Coinbase (COIN) on March 9. Bitcoin's price was volatile as a result, rising as much as 9.7% in a 24-hour period before returning to where it was before.
Now, however, bitcoin traders remain unperturbed by renewed concerns of selling pressure from the U.S. government, as the cryptocurrency continues to trade around $28,000.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.