US Government vs The ‘Silk Road’

With being a modern US citizen, it is more than likely the average individual works a full time job, with a form of supplementary income.

On average you can meet someone who is living such a lifestyle with their ‘side hustle’ being based around a passion of some kind. But what if the ‘side hustle’ was scaled on a federal level?

The US Government has found a very lucrative ‘side hustle’ within crypto itself. In coordination with multiple federal agencies like the Secret Service, the US Government has reallocated millions of dollars worth of various crypto currencies to be sold back to the public. The access to these currencies are generally seized from the Silk Road and it’s millions of users.

The Silk Road is an online, global distribution center of illegal and illicit drugs and activities. The main driver of an organization like the Silk Road, is untraceable, decentralized crypto currencies.

When a criminal is caught using the Silk Road, their assets are seized. It is highly likely that they were utilizing a cryptocurrency to conduct their business within the Silk Road.

Once fully seized and the criminal is apprehended, all ownership of the criminals assets gets transitioned into federal control. This has left the US Government sitting on a gold mine of coins that can be put back into circulation at the will of the agency that obtained the coin/asset.

For example, in 2014, the US Government saw fit to sell 30,000 BTC to capitalist Tim Draper for around $19 Million. And in 2018, they conducted a similar operation when they sold 500 BTC for around $5 Million which was sold to Riot Blockchain. All coins were seized from criminals conducting illegal activities online.

With the interest into Cryptocurrency reaching a all time high, the ways to make money utilizing crypto are expanding. But so too are the ways to conduct illegal activities.

And with the Federal Government taking a front seat in the reallocation of significant coin collections, there could come a day when the federal government has more influence on the markets then it was ever meant to.

Sources:

https://en.m.wikipedia.org/wiki/Silk_Road_(marketplace)

https://www.theverge.com/platform/amp/2021/11/18/22789507/crypto-scam-government-bitconnect-56-million-victim-reimbursement

https://en.m.wikipedia.org/wiki/Tim_Draper

https://www.cnbc.com/amp/2021/12/19/what-the-us-government-does-with-its-secret-bitcoin-stockpile.html

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