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Crypto hoarding: has the US government been transparent with its crypto seizures ?

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TL;DR

  • Tyler Swope suspects the US government of crypto hoarding
  • Cites the lack of transparency on seized BTC as a cover for the act.

The government of the United States, most times, tends to seize Bitcoin from criminals it suspects to be from the notorious dark web. 

Though these seized Bitcoin are sometimes auctioned off, a popular crypto influencer and analyst, Tyler Swope, claims that he suspects the government to be hoarding such crypto assets instead.

Swope mentions the example of Alexandre Cazes. Alexandre is reportedly the owner of AlphaBay. AlphaBay is one of the biggest marketplaces on the darkweb.

He says the coverage of Alexandre death by Fortune Magazine leaves room for suspicion that the government might actually be practicing crypto hoarding. 

According to the magazine, the government is not totally transparent when it comes to the issue of seized Bitcoins and they also tend not to release the full details of where these seized crypto assets end.

The magazine went on to state that the government, however, tends to periodically auction these BTCs.

Swope said the coverage Fortune Magazine had given to these auctioned BTC raised salient questions on whether the United States government were stylishly crypto hoarding.

He further highlighted that there is a lack of transparency when it comes to the seized assets. He says that the government tends to leave a long waiting period before releasing information on those coins.

Crypto Hoarding? US government seizes $1 billion worth of BTC

The United States government recently announced that it was seizing Bitcoin worth over $1 billion from Silk Road. Silk Road is an online black marketplace on the darkweb.

Tyler Swope mentioned that the government might be using this seizure as a ploy to stockpile its own hold of the cryptocurrency.

He said the government refusal to release the identity of the mystery individual who was behind stealing over 70,000 BTC seven years ago.

You will recall that the US Marshal recently auctioned over 4000 BTC in February.

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Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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