US Government Transfers $33.6 Million in Seized Cryptocurrency
The US government has impacted the crypto market by transferring a significant portion of its seized cryptocurrency holdings. According to blockchain intelligence platform Arkham, $33.6 million in various cryptocurrencies, originally confiscated from the fallen FTX crypto exchange and Alameda trading firm, has been moved to two unidentified wallets.
Government Transfers $18M in Ethereum
The transfer occurred on December 3 through a series of transactions. The government transferred 5,024 ETH worth approximately $18 million to two addresses with identifiers “0x9cd” and “0x9ac”. The transfers included roughly $13 million in Binance USD, $1.5 million in Shiba Inu, and other tokens.
The timing coincided with a broader market rally. Ethereum increased by 3.10% over 24 hours, reaching $3,721, up from $2,460 a month prior. November's on-chain volume for Ethereum hit $183.74 billion, the highest this year. Analysts speculate that capital rotation may be driving these trends as participants shift funds from centralized exchanges to on-chain activities.
US Moves $2B Bitcoin from Silk Road
A day before the Ethereum transfers, a US-linked wallet moved nearly $2 billion worth of Bitcoin. This action split 19,800 BTC into two wallets: one received 10,000 BTC valued at $969 million, and the other received 9,800 BTC worth $949 million at that time.
ALERT: US GOVERNMENT MOVING $1.92B BTC TO NEW ADDRESS
Address: bc1q0av33ktzrkjps8exjex5gtv98vx225uqmzhspm pic.twitter.com/JSELsjFg5T
— Arkham (@arkham) December 2, 2024
These Bitcoin holdings are linked to the Silk Road forfeiture, a dark web marketplace founded by Ross Ulbricht. In July, Arkham reported a similar transfer when the US split $2 billion worth of Bitcoin seized from Silk Road into separate addresses.
While Arkham did not confirm the purpose behind this latest Bitcoin transfer, it referenced the July movement as a potential deposit into institutional custody or service. Earlier this year, the US Marshals Service revealed it uses Coinbase for custodial operations.
As of December 4, the US government reportedly holds over 198,000 BTC, valued at $19.2 billion. This substantial reserve has sparked renewed discussions regarding the government's strategy with its crypto holdings.