As a long-time crypto investor and supporter of Bitcoin and XRP, I find the recent actions of the U.S. government towards Coinbase and the sale of confiscated Bitcoins from Silk Road to be highly hypocritical and confusing. Gary Gensler, as the chairman of the SEC, has publicly declared Coinbase’s business as illegal for trading altcoins, which he deems as unregistered securities. Yet, it is ironic that the U.S. government continues to use the services of the largest U.S.-based crypto exchange, Coinbase Prime, and conduct transactions worth millions of dollars in Bitcoin.
Expert: John Deaton, a prominent cryptocurrency advocate with a focus on Bitcoin and Ripple, has shared his perspective on the $250,000 Bitcoin purchase made by the U.S. government through the Coinbase exchange, as reported on his X social media account.
In 2013, a portion of the ill-gotten funds from the now-defunct Silk Road dark web marketplace was seized. Following the marketplace’s closure and the arrest of its founder, Ross Ulbricht, he was sentenced to two life terms in prison for his role in these illegal activities.
Deaton stated that this does not coincide with the recent SEC policy of proclaiming Coinbase illegal.
I’ve grown tired of the illogical statements coming from our government on cryptocurrencies. At Senator Warren’s behest, Gary Gensler, whom she appointed to lead the charge, has joined the crusade against crypto that Warren had pledged during her reelection campaign. As the Chairman of the Securities and Exchange Commission (SEC), Gensler has declared that Coinbase’s actions fall under the SEC’s jurisdiction.
— John E Deaton (@JohnEDeaton1) June 27, 2024
Gary Gensler proclaims Coinbase “illegal”
Deaton emphasized to the public that that that head of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has taken a firm stance against Coinbase by classifying its altcoin trading activities as unlawful, deeming them as “unregistered securities.” In June of the previous year, the SEC announced their accusations against the exchange based on these allegations.
Coinbase sued the regulatory body in retaliation. However, an unexpected turn of events transpired: The US government transferred $241.22 million worth of approximately 3,940 BTC to Coinbase for sale. Originally seized from a drug trafficker on the Silk Road in 2021, these assets were subsequently forfeited during the trial held in January 2024.
John Deaton criticized this action by the government as “nonsensical,” as it permits Gary Gensler and Senator Warren to challenge the entire cryptocurrency sector while still utilizing the services of a major U.S.-based crypto exchange, Coinbase Prime. Previously, a comparable transaction took place in March of the previous year when the U.S. government sold off 9,861 coins for $216 million from its digital wallet.
Bitcoin price pushed down by sale
Based on reports from cryptocurrency journalist Colin Wu, following that particular transaction, the United States authorities continue to hold approximately 213,546 Bitcoin seized from Silk Road, valued at over $13 billion.
According to the founder of CryptoQuant, the recent Bitcoin sale they mentioned isn’t expected to significantly affect the cryptocurrency’s market price. However, an intriguing twist unfolded as Bitcoin experienced a 1.76% decline from $61,778 down to $60,688 concurrently with this sale. Currently, Bitcoin is rebounding and has reached $61,260.
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2024-06-27 17:11