A US finance lawyer has indicated that the US Marshals Service is poised to sell Bitcoin seized from the Silk Road, causing ripples of speculation throughout the cryptocurrency market.

US Marshals Could Sell Silk Road Bitcoin

The US Marshals Service (USMS) is likely selling Bitcoin confiscated from the notorious Silk Road marketplace, according to US finance lawyer Scott Johnsson.

The claims made by Johnsson are based on a service agreement that was inked in June between Coinbase and the USMS. Johnsson claims that the USMS has sold or is preparing to sell these assets once Bitcoin reaches Coinbase Prime, as indicated by this agreement, reports Cointelegraph.

US Marshals Moving Bitcoin to Custodian

Johnsson elaborated on the fact that, per the terms of the arrangement, the USMS has been transferring Bitcoin to a custody address.

According to Johnsson:

The transactions will only be officially confirmed when the Department of Justice's Asset Forfeiture Program report for fiscal year 2024 is released, which is due in January.

Aside from the obvious commercial considerations, Johnsson dropped hints that President Joe Biden's government may press on with such initiatives unabated.

But Johnsson's reading isn't universally accepted. Bitget Research's head analyst Ryan Lee thinks that, despite early worries, Silk Road Bitcoin is not going to sell.

The cryptocurrency community as a whole is confused and speculative about the market effect of a government-held Bitcoin, and this split in opinion reflects that.

$600 Million in Bitcoin Sent to Coinbase by US Government

The United States government reportedly sent Coinbase about $600 million in Bitcoin on August 15th, according to blockchain analytics company Arkham Intelligence. A Coinbase Prime wallet received the Bitcoin.

Big purchases made by large holders, or "whales," can historically drive up the price of Bitcoin. In order to foresee possible selling pressure, investors frequently monitor these transactions.