According to The Wall Street Journal, the U.S. government is one of the world's largest Bitcoin holders, but unlike other crypto whales, price isn't a consideration when it comes to selling.
This is because the approximately 200,000 Bitcoins held by the U.S. government were confiscated from cybercriminals and dark web marketplaces. These Bitcoins are primarily stored in encrypted, password-protected hardware wallets controlled by agencies like the Department of Justice and the IRS, and they are not actively traded online. The U.S. government's rate of selling Bitcoin for dollars has been very slow. They are not holding Bitcoin for the long term with the expectation of selling at a high price. Instead, their holdings are more like a byproduct of lengthy legal processes.
Jarod Koopman, Executive Director of the IRS Criminal Investigation Division, stated, "We do not engage in market trading. Our actions are primarily driven by the timing of legal processes."
According to an analysis of public documents by the cryptocurrency company 21.co, the legal process from seizure of Bitcoin to the final order for token liquidation can take several years.
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