Important agreement with Coinbase announced

Attorney Scott Johnsson speculates that the US Marshals Service will most likely sell the bitcoins it seized in the Silk Road case. His assumption is based on a service agreement signed in June of this year between the USMS and Coinbase that sets out precise procedures for handling and transferring assets.

According to Johnsson, the transaction details indicate that with the transfer of bitcoins to Coinbase Prime, it becomes clear that the USMS has either completed the sale or is close to doing so.

Johnsson’s claim was actually confirmed in a tweet, which went on to say that the USMS forwarded Bitcoin to a custodial address pursuant to an agreement with Coinbase. Under the agreement, USMS funds are kept completely and entirely segregated from other funds.

So, if bitcoins are being moved to Coinbase Prime or another similar exchange, it is a sign that the USMS has already conducted a sale or is about to do so. Official confirmation of this activity will likely be included in the US Department of Justice’s report on the Asset Forfeiture Program for fiscal year 2024, expected in January.

Crypto community reacts to Bitcoin sale claims

Johnsson’s tweet sparked considerable discussion in the crypto community, with one member asking whether transferring these coins to Coinbase was sufficient proof of a sale, since Coinbase’s addresses are not fully segregated.

Johnsson clarified that while Coinbase alone cannot be conclusive evidence, the movement to mixed addresses strongly suggests the coins have been sold or are about to be sold. He said a backlog of post-seizure bitcoins should have been sold by the end of last year, but the finalization of the service agreement appears to have delayed things.

The member pointed out that a large amount of Bitcoin was sold in February 2023 without the need for any new agreements or procedures. He asked why all Bitcoin could not have been sold directly by the USMS from the beginning.

Johnsson referred the member to the audit report from the Department of Justice’s Office of Inspector General, which outlined the need to enter into the services agreement with Coinbase and explained procedural delays.

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