US government moves $297M in seized Bitcoin, Ether to Coinbase Prime

[GreatArkansas]

but I won't be shocked if they dump it because the government will need money for their ongoing attack on Iran, and they won't care if they use the seized cryptocurrency.

Lol, $297m is not such a huge amount of money for a country like the U.S., and i don't know where you got this idea from, but the U.S. has enough money to fund their wars and they do not need to sell BTC to do so. There is also an existing executive order that confiscated and forfeited BTC should be used to make up the U.S.'s BTC strategic reserve, so this administration knows that selling these coins would put them on the spotlight for the wrong reason.

Yeah, that's why this transfer may not really affect the market, plus it's only the US that did this.

Another thing on my mind, it's kinda obvious, you moved an asset from your wallet to an exchange, you may have only 2 options: sell it or convert it to other coin.

[Myleschetty]

but I won't be shocked if they dump it because the government will need money for their ongoing attack on Iran, and they won't care if they use the seized cryptocurrency.

Lol, $297m is not such a huge amount of money for a country like the U.S., and i don't know where you got this idea from, but the U.S. has enough money to fund their wars and they do not need to sell BTC to do so. There is also an existing executive order that confiscated and forfeited BTC should be used to make up the U.S.'s BTC strategic reserve, so this administration knows that selling these coins would put them on the spotlight for the wrong reason.

If you think like a politiciamln, you'll understand that the executive order can be changed. Is Trump not the President?
Are you unaware of how he advised holding Bitcoin while dumping it?
Yes, the US has a lot of money, but do you know how many wars and military operations they have financed?
What about their debt?
The conflict between Russia and Ukraine has been going on for years with US support, and President Trump claimed that a single attack on Iran  cost them millions of dollars, so using money obtained through forfeits wouldn't have any negative effects on them.
Given that the US government use Coinbase Prime for storage, liquidation, etc.
They are free to do as they please, and they may deposit the €297 million cryptocurrency to add to some prior cryptocurrency they have on Coinbase and then sell it.
Don't believe political promises until they are fulfilled.

[macson]

The US government is likely transferring the Bitcoin to Coinbase Prime for custody, as it's part of the strategic reserve, making it reasonable for them to ask a third party to manage it for them. So this news shouldn't be a major concern --- it's also possible they'll transfer more Bitcoin to Coinbase for their custody.

[boyptc]

People who's not aware of what coinbase prime is needs to look at its description. Because it's not only for trading for which some might think that US is ready to dump those that they've sent to it.

but I won't be shocked if they dump it because the government will need money for their ongoing attack on Iran, and they won't care if they use the seized cryptocurrency.

That's not surprising.

But I think that there's a purpose into it and having another funds will have to go through proposals and passing of law from the congress/senate for their addition fund for the war.

While it doesn't matter where they're going to get it, lawmakers want the war to stop because they're funding too much for it instead of focusing their own land, people and their needs.

[ThemePen]

People who's not aware of what coinbase prime is needs to look at its description. Because it's not only for trading for which some might think that US is ready to dump those that they've sent to it.

but I won't be shocked if they dump it because the government will need money for their ongoing attack on Iran, and they won't care if they use the seized cryptocurrency.

That's not surprising.

But I think that there's a purpose into it and having another funds will have to go through proposals and passing of law from the congress/senate for their addition fund for the war.

While it doesn't matter where they're going to get it, lawmakers want the war to stop because they're funding too much for it instead of focusing their own land, people and their needs.

You are correct that Coinbase Prime is not only trading platform, it is official safekeeping platform of US Marshals for any taken digital assets. Transfer to it is a normal custody action and is not necessarily a sell signal. These transfers seem to be from still active criminal cases such as Farace and BTC-e, so they may not be protected by that at this time. That is the legal grey zone of doubt in the markets. Transfer itself is not the reason behind guessing, other it is the lack of public explanation of the timing from the government.

[Alpha Marine]

As I have always said, the US does not have a strategic Bitcoin reserve; they have Bitcoin that they seized, and Trump gave them an order not to sell. It's not like they always sell seized Bitcoin anyway; it's done once in a while. Trump has never been a man of his word, so it shouldn't be surprising if he goes against his word and tells them to sell.

Selling less than 4k bitcoins is not something that will cause major upsets in the market anyway. It will have an effect, but it will only be for the short term, and they won't all be sold at once. A short term impac with the bear market making it seem worse (if they sell now), but that's about it. Nothing to worry about. Germany sold 5k bitcoin and nothing happened.

[Z-tight]

Don't believe political promises until they are fulfilled.

Hey man, i don't know what you're going on about. I never said it is certain that they would keep to the order that confiscated coins should form the strategic reserve, i was just pointing out that such an order exists and it makes selling these coins more difficult. It does not matter how crazy Trump is, he would know that selling would have a lot of people talking, so they may try to avoid that negative publicity.

[boyptc]

People who's not aware of what coinbase prime is needs to look at its description. Because it's not only for trading for which some might think that US is ready to dump those that they've sent to it.

You are correct that Coinbase Prime is not only trading platform, it is official safekeeping platform of US Marshals for any taken digital assets. Transfer to it is a normal custody action and is not necessarily a sell signal. These transfers seem to be from still active criminal cases such as Farace and BTC-e, so they may not be protected by that at this time. That is the legal grey zone of doubt in the markets. Transfer itself is not the reason behind guessing, other it is the lack of public explanation of the timing from the government.

Others are quick to judge that because it's transferred to coinbase prime means that they're going to dump. Although that possibility is there but not always as it is.

While they have no obligation to explain what's the main reason of the transfer. We will know it in due time.

May not be right now but somewhere in the future, we'd see their next action after this transfer.

[Myleschetty]

Don't believe political promises until they are fulfilled.

Hey man, i don't know what you're going on about. I never said it is certain that they would keep to the order that confiscated coins should form the strategic reserve, i was just pointing out that such an order exists and it makes selling these coins more difficult. It does not matter how crazy Trump is, he would know that selling would have a lot of people talking, so they may try to avoid that negative publicity.

I'm attempting to convey that there might be some change in decision over some Bitcoin move to Coinbase Prime since the law was to hold as Strategic Bitcoin Reserve the US government seized ( thats current seized; there's no addition of about to seize BTC) assets rather than selling off.
Trump may sell off some BTC as a result of some US citizens complaints about him using money that should be used for the state's betterment on war. Remember, according to this year's news, they seized 127,000 BTC from Chen Zhi, the CEO of Prince Holding Group, which is based in Cambodia.