The U.S. government is one of the world’s biggest holders of bitcoin, but unlike other crypto whales, it doesn’t care if the digital currency goes up or down in value.
That is because Uncle Sam’s stash of some 200,000 bitcoin was seized from cybercriminals and darknet markets. It is primarily offline in encrypted, password-protected storage devices known as hardware wallets that are controlled by the Justice Department, the Internal Revenue Service or another agency.
What the federal government does with its bitcoin has long been a topic of interest among crypto traders because any sale could potentially swing prices or cause other ripple effects in the $1 trillion digital-asset market.
The U.S. has been notoriously slow to convert its stash of bitcoin into dollars. It isn’t HODLing, crypto parlance for “holding on for dear life" and never intending to sell. Nor is it waiting for bitcoin to go “to the moon" so it can sell its holdings for a hefty profit. Rather, that big pile of bitcoin is more a byproduct of a lengthy legal process than strategic planning.
“We don’t play the market. We basically are set by the timing in our process," said Jarod Koopman, executive director of the IRS’s cyber and forensics services section, which oversees all activities focused on cybercrimes.
Three recent seizures alone put more than 200,000 bitcoin in the government’s coffers, according to an analysis of public filings by crypto firm 21.co. Even after selling some 20,000 bitcoin, the U.S.’s holdings are still worth more than $5 billion, the analysis shows. The size of the government’s total stash is likely much larger.
Esta historia es de la edición October 17, 2023 de Mint Mumbai.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición October 17, 2023 de Mint Mumbai.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
A counterintuitive view on education
A book about Shomie Das, principal of three posh schools, serves as a rich distillation of his thoughts on education
The loss of sound in our noisy lives
Sound memory fades faster than visual memory. In a world as rapidly changing as ours, a museum of endangered sounds makes sense
A whole new League
When Arcane first dropped on Netflix, it didn't just break the mold for animated television—it shattered it into shiny fragments, each as intricate as the show's hand-painted aesthetic.
When pets get cancer
Advances in veterinary sciences have enabled several treatments, but early detection can make all the difference
Reduction of energy costs in the telecom sector
With telecom infrastructure companies looking for newer ways to cut back on energy costs, battery restoration technology provides telecom infrastructure firms with a viable, economical and green solution for uninterrupted power supply
Skip cheese and sip wine in Switzerland
Beyond chocolates and cheese, there's another Swiss gem to discover — vineyards that have been passed down through the generations
Bankers aren't always frank about bank regulation
The 'world's banker' Jamie Dimon, CEO of JPMorgan Chase, speaks his mind even if it means taking swipes at US regulators.
Baku: A climate breakthrough looks depressingly bleak today
The success of fossil fuel-favouring politics threatens the planet
Global solidarity levies can play a vital role in our climate efforts
Solidarity taxes could support redistributive measures and optimize how we collectively tackle a great challenge of our times
Speak for the Earth: It's the least we should do
This year's Booker prize winner turns our gaze to the planet from orbit and reminds us of the climate disaster that looms. Can odes sung to Earth move the world to act in its defence?
