The United States government has recently moved a portion of its seized Bitcoin to an unidentified wallet. According to blockchain intelligence firm Arkham Intelligence, the transfer involved 58.742 BTC, valued at around $4 million, and occurred on Monday afternoon.
Bitcoin Seized from Convicted Drug Dealer
Arkham’s wallet label reveals that the Bitcoin was originally seized from Ryan Farace, a drug dealer convicted in 2028 for selling Xanax on dark web marketplaces under the alias “Xanaxman.” Farace initially forfeited 24 BTC, claiming he couldn’t access additional funds earned through his illegal activities. During his sentence, he faced further indictment and conviction for instructing his father, Joseph Farace, to move 2,874 Bitcoin outside the United States. However, the Department of Justice (DOJ) successfully recovered 2,933 BTC from the Farace family and announced plans to sell the seized Bitcoin in January.
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Details of the Recent Transfer
The recent transfer of 58.742 BTC represents a small fraction of the total Bitcoin seized from the Farace family. Interestingly, this amount matches the 58.742155166 Bitcoin mentioned in a May 2021 DOJ seizure notice. The U.S. government currently holds around $15 billion worth of cryptocurrency, with Bitcoin making up nearly $14.6 billion of this total.
The reasons behind this specific transfer remain unclear, adding to the mystery surrounding the government’s handling of seized cryptocurrencies.
The U.S. government’s recent transfer of seized Bitcoin to an unknown wallet raises questions about the future handling of confiscated digital assets. As the amount moved represents only a small portion of the total seized from the Farace family, it will be interesting to see how the government manages its substantial cryptocurrency holdings moving forward.
