Billions In US Government Bitcoin Moved; Singapore Adding To Digital Assets Framework

DoJ is Bitcoin-rich

One of the benefits (or challenges?) of the blockchain is its transparency. You can see the movement of crypto between wallets assuming you have the tools -ideal for anti-money laundering professionals and the heart of blockchain analytics firms’ services.

Blockworks reported yesterday that the 30,000 Bitcoin (nearly $2 billion USD) from the assets confiscated in the years-old “Silk Road” case was moved by the Department of Justice to a Coinbase wallet this week.

Blockworks adds, “The US government is known to have used Coinbase to sell off bitcoin connected to the Silk Road bust in the past. In June 2023, officials sold nearly 10,000 coins, which amounted to around $215M at the time of the sale.” Read more.

what you should know: If the Department of Justice holds on to (“hodl’s”) the 30,000 coins from Silk Road and the price of a Bitcoin reaches, say, $300,000, this total roughly equals the Biden Administration’s proposed taxes on crypto-related activities in 2025. AG Garland, you in?

crypto advocacy screed

The Cedar Innovation Foundation X account came to life yesterday with a screed on Securities and Exchange Commission Chair Gary Gensler and Prometheum.

The crypto advocacy group has already been active (featured in CNBC, CoinDesk) in supporting pro-crypto Congressional candidates. With the Gensler/Prometheum Twitter thread, Cedar Innovation Foundation makes clear that the issuance of a special purpose broker-dealer license to digital asset *securities* platform Prometheum was highly questionable. (Read recent  coverage on blockchain tipsheet.)

Cedar’s X account writes, “Lawmakers from both parties have raised concerns about Prometheum’s deep ties to the Chinese Communist Party, as well as inconsistencies in the company’s SEC filings. Yet, Gensler and the SEC have propped up Prometheum as the model of what a crypto company should be.”

Read the entire thread.

more tips:

regulatory framework: Singapore

Yesterday, Singapore took another step forward with its crypto regulation framework.  Ledger Insights reports that “The Monetary Authority of Singapore (MAS) has introduced cryptocurrency-related amendments to the Payment Services Act, focusing on digital payment token (DPT) service providers.” MAS also published new guidelines for the custody of digital assets. Read more.

According to a MAS press release, the new updates will “impose user protection and financial stability-related requirements on digital payment token (DPT) service providers.” The updates will take effect over the next six months and continue to reflect MAS’ belief that crypto is for institutions and too risky for retail customers.

more tips:

    • MAS Expands Scope of Regulated Payment Services; Introduces User Protection Requirements for Digital Payment Token Service Providers (yesterday) – The Monetary Authority of Singapore

JP Morgan – crypto job

Don’t be fooled by JP Morgan CEO Jamie Dimon‘s dismissive attitude toward Bitcoin. His company is building for a crypto and blockchain future.

An ad for a job on the JP Morgan Careers website reveals the company is looking at innovations in digital wallets and custody. A “Software Engineer” job description in the bank’s “Corporate Sector” business unit reads in part: “Conduct proof-of-concepts and technical evaluations of third-party digital asset custody solutions. Implement cloud security policies and authentication and authorization schemes to secure access for crypto wallet solutions.” See the ad.

what you should know: JP Morgan’s blockchain-based Onyx platform which utilizes tokenization has been around for several years. Read this PDF titled, “The Future of Wealth Management.”

Goldman Sachs – crypto skeptic

A Wall Street Journal feature article on Goldman Sachs wealth management’s chief investment officer Sharmin Mossavar-Rahmani reveals she’s no fan of crypto and claims her clients feel the same way. With crypto, Mossavar-Rahmani sees tulip mania and the end of central banks leading to anarchy. She concludes , “At least you can hold onto physical gold and store it; you can’t do that with crypto… And anyway, we don’t encourage people to own gold.” Read more.

still more tips

Xion Raises $25 Million To Make Crypto Disappear – Xion’s Burnt blog

He Emptied an Entire Crypto Exchange Onto a Thumb Drive. Then He Disappeared (subscription) – WIRED

Coinbase’s path to legal victory against the SEC looks murky after latest setback (April 1) – Fortune on Yahoo

Weekly Commentary: What to expect in Q2? (March 29) – Coinbase