US Government Accumulates $2.2 Billion in Confiscated Bitcoin

The US government reveals that it has confiscated $12.5 million, or 391 bitcoins on New Year’s eve. Analyst Kevin Rooke reports through his Twitter account.

January 4, 2020 | AtoZ Markets – The volume of confiscated bitcoins under the control of the US authorities has exceeded the $2.2 billion mark. Crypto analyst Kevin Rooke was the first to notice this on his Twitter page.

According to Rooke, in 2021, the number of bitcoins directly controlled by the US authorities reached 69,814 BTC ($2.24 billion at the rate of $32,122 per BTC). The latest increase in seized bitcoins took place in early January 2021, when the California District Court issued an order to seize 391 bitcoins currently worth $12.5 million.

Rooke points out that this is the largest Bitcoin seizure since 69,370 BTC was seized from the Silk Road darknet marketplace in November 2020.

What will US government do with confiscated Bitcoin?

How exactly the US authorities will dispose of the confiscated Bitcoin is still unknown. In early 2020, for example,  the U.S. Marshals Service auctioned off over 4,000 BTC with larger lots, of up to 2,500 BTC.

The first-ever Bitcoin auction of confiscated cryptocurrency took place on June 27, 2014. Then the buyer was a well-known supporter of the crypto market Tim Draper, who bought 29,657 bitcoins for $18.7 million.

Read also: German Prosecutors Sell Seized Cryptos worth $14 Million

While various governments choose to auction off their seized cryptocurrency, as reported Finland controls over $16.2 million worth of BTC it hasn’t offloaded via an auction over concerns it may end up in criminals’ hands again.

In November 2020, analyst firm Chainalysis announced it was launching a program to help government agencies store and sell confiscated cryptocurrency.

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