The Government Has a Surprising Stockpile of Bitcoin It's Trying to Elimintate

Larry Lease

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The government is continuing to auction off its massive stockpile of bitcoin.executium/Unsplash

With the evergrowing popularity of bitcoin and its use as a new form of payment for a wide range of transactions, the U.S. has been auctioning off bitcoin and other digital currencies. However, the government has actually lost out on a serious profit. Bloomberg reports that In 2018, the government sold 500 bitcoin to Riot Blockchain for only $5 million, but it's now worth more than $23 million.

According to the Financial Times, 30,000 bitcoin was sold to billionaire venture capitalist Tim Draper for $19 million and now that bitcoin is worth more than $1.3 billion today. The bitcoin the government has managed to auction off came from seizures from law enforcement sting operations. They auction it off just like other property seized during similar operations such as boats and cars.

The Department of Justice is getting ready to sell off $56 million worth of cryptocurrency it seized as part of a ponzi scheme case. According to the Justice Department, the bitcoin comes from the largest single recovery of a digital currency fraud by the U.S. to date. According to Coin Geek The ponzi scheme swindled a large group of people in America and across the world out of more than $2 billion worth of bitcoin from 2017 to 2018. The cryptocurrency was seized from 20 digital wallets managed by Glenn Arcaro. Arcaro was a promoter of BitConnect in the U.S. Arcaro eventually pleaded guilty to charges of conspiracy and wire fraud.

Arcaro has become the fall guy for the Ponzi scheme as the founder of BitConnect Satish Kumbhani remains a free man and on the run. Arcaro is facing a possible 20-year prison sentence. He is scheduled to be sentenced on Jan. 7.

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I specialize in crime, entertainment and political stories. I have spent eight years as a freelance writer and journalist.

Dallas, TX
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