Government Moves Bitcoin from Seized Assets
On Monday, the U.S. government executed a transfer of 58.742 Bitcoin (BTC), equivalent to approximately $4 million, to Coinbase (COIN), as indicated by blockchain analytics firm Arkham Intelligence. This substantial transfer emanated from an address denoted as “U.S. Government: Ryan Farace Seized Funds,” identified on-chain with the address 3B2jEBZi8fJWGEDrh6Pe7hDMaJ6iGfFtaU.
The Bitcoin in question was confiscated three years prior from Ryan Farace, who was convicted in 2018 for illicitly distributing Xanax via the dark web. Following this, his father, Joseph Farace, was also convicted for laundering and trafficking Bitcoin proceeds, which were earmarked for federal forfeiture. The Department of Justice ultimately recovered 2,933 BTC from the father-son pair and declared its intention to liquidate these assets earlier this year.
Read more: Coinbase Ordered to Revise Efforts to Subpoena SEC Chairman Gary Gensler
Minimal Impact Expected on Market Dynamics
The recent transaction, which appears to be a preparatory step for liquidation, has depleted the “Ryan Farace seized funds” address. This transfer represents a minute fraction—less than 1%—of Bitcoin’s 24-hour trading volume, which exceeds $35 billion, according to Coingecko.
Given the relatively small volume involved, the liquidation through Coinbase is anticipated to exert negligible influence on Bitcoin’s spot price, unlike the significant impact seen with Germany’s Saxony state. Saxony’s sale of 49,858 BTC from June 19 to July 12 caused Bitcoin’s spot price to plummet to $53,500 at one point. As of the latest data, Bitcoin is trading at $67,450. Notably, the U.S. government retains over 213,000 BTC, valued at more than $14 billion.