Bitcoin down as US Government unveils plan to sell Silk Road BTC
BTC/USD is trading at 28,093, down by 0.12% in 24 hours. As regulatory action against the cryptocurrency sector increases and the US government reveals plans to sell more than 41,400 BTC in 2023, the price of Bitcoin has declined.
US To Sell Seized Bitcoin
One of the leading bitcoin holders, the US government, has unveiled intentions to sell more than 41,400 bitcoins taken as part of the Silk Road founder Ross Ulbricht’s legal case. The data comes from a document filed on March 31 to the US District Court for the Southern District of New York. It highlighted the ongoing proceedings against James Zhong, who had stolen over 50,000 bitcoin from the Silk Road marketplace.
The government seized over 50,000 BTC from Zhong in November 2022, marking the largest bitcoin seizure in history. In September 2012, the defendant pled guilty to wire fraud after fraudulently purchasing more than 50,000 bitcoins on the dark web.
The US government has already started liquidating about 51,352 BTC recovered in the Ulbricht case. According to the filing, authorities sold around 9,861 BTC on March 14 for more than $215 million, leaving about 41,491 BTC, which they will sell in four separate portions throughout 2023.
The price of Bitcoin falls as the US prepares to sell more than 41,000 seized BTC.
Moreover, the US government has made many attempts to regulate the cryptocurrency market, and this revelation is among the most recent. Authorities are getting more concerned about the potential for cryptocurrency use in illegal activities, including money laundering and terrorism funding. As a result, in the years to come, we may anticipate more industry monitoring.
Some other regulatory actions against the crypto industry
The US Securities and Exchange Commission (SEC) has charged Ripple Labs and its executives with breaking securities laws. Interestingly, legal experts in the crypto sector expected the case to conclude on March 31. However, it never happened.
Meanwhile, the US regulators’ legal action against Binance last week has caused turbulence in the crypto market. The US Commodity Futures Trading Commission (CFTC) initiated action against Binance and its founder, Changpeng ‘CZ’ Zhao.
The CFTC asserts that the company violated its regulatory requirements by failing to register with the derivatives authority. The CFTC has been looking into Binance’s operations since 2021.
Moreover, a recent study claims that restrictions on web3 firms are limiting Britain’s efforts to establish itself as a global crypto center. The UK cryptocurrency sector also has a challenging time accessing banking services. According to the Bloomberg report on April 02, the few banks still engaging with web3 companies are demanding more thorough documentation. As a result, it can lead to issues like applications being rejected or being weighed down in paperwork. All these negative developments have led to a downfall in Bitcoin prices today.