The U.S. Justice Department has recently collected the earnings from the sale of 144,336 bitcoins which is currently valued at around $48 million. The said money amassed after the shutdown of the Silk Road- an infamous online drug market, in 2013.
The US Government auctioned the bitcoins back in 2014 and 2015. However, Creator Ross Ulbricht has questioned the legitimacy of the said castigation.
Additionally, Ulbricht has also decided to drop such claims last week. This means that the government can claim the proceeds entirely, The Office of Joon H. Kim, Acting U.S. Attorney for Manhattan told reports.
In further details, the government has indeed found success on Bitcoin sales in which had an average of $334 each. However, reports claim that such action was done in a bad time. In 2013, Bitcoin was at a high of $1,000 which slumped in the following years until 2016 in where it began to surge again. The government could’ve generated $630 million had taken such action in the current year in where Bitcoin is priced at $4,400.
Venture capitalist Tim Draper was one of the beneficiaries of the Bitcoin sales done by the Justice Department. Draper acquired an additional batch of approximately 30,000 bitcoins which was sequestered from Silk Road
"Draper acquired an additional batch of approximately 30,000 bitcoins which was sequestered from Silk Road."
The office of the US Attorney did not clearly indicated if the earnings from the said confiscation will be disseminated through agencies such as the FBI and IRS or if such would go to the US Treasury instead. Koon refused to comment further but later on, will provide more details about the said issue.
The decision of Ulbricht about the Bitcoin seizure sprouted from the investigation which resulted to the demise of Silk Road. It was somehow tarnished by two corrupt agents from the Drug Enforcement Agency and the Secret Service, who pretended as delinquents with the intention of pilfering the Bitcoin.
The said agents haven’t had a crucial effect on Ulbricht’s trial. He was sentenced based on a number of evidence pinned on him such as detailed server and chat registers that acknowledged him as the "Dread Pirate Roberts" who erected and organized Silk Road.
At the time of writing, the BTC/USD is currently dominated by bears. So far, it can close at 4265.00 if it is to stay on such level. If it will stay on this range, it will be down by approximately -2.88% or nearly -126.48 points generally.
As for the Relative Strength Index, the indicator is at 55.73 which also mirrored the performance above. It could’ve reached the 60’s region had it have a bullish performance.
The Coppock Curve was last found at 25.36 - a positive region indicating a buy for the cryptocurrency. Since it indicated a bullish uptrend, the bearish domination above may be temporary and it may uptrend soon.
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