As of December 4, the US government reportedly holds over 198,000 BTC, valued at $19.2 billion. With such massive reserves, the recent activity has reignited conversations around the government’s strategy concerning its crypto holdings.
By Bena Ilyas
Edited by Julia Sakovich
Updated
3 mins read
The US government has stirred 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.
The transfer occurred on December 3 in a series of calculated transactions. Among these, the government transferred 5,024 ETH ETH $3 018 24h volatility: 8.1% Market cap: $363.59 B Vol. 24h: $37.84 B worth approximately $18 million to two addresses, both beginning with cryptic identifiers “0x9cd” and “0x9ac”. The transfers didn’t stop at Ethereum. Roughly $13 million in Binance USD , $1.5 million in Shiba Inu SHIB $0.000020 24h volatility: 6.9% Market cap: $11.98 B Vol. 24h: $582.64 M , and an assortment of other tokens were included.
The timing of these moves raised eyebrows as they coincided with a broader market rally. Ethereum saw a modest uptick of 3.10% over 24 hours, with its price hitting $3,721, a significant climb from $2,460 just a month prior. Ethereum’s November on-chain volume reached an astounding $183.74 billion, the highest recorded so far this year.
“This increase is likely driven by capital rotation, as market participants move down the risk curve, reallocating funds from CEXs to on-chain activities,” noted. The market’s vibrancy added layers of speculation to the government’s decision to shift its crypto assets, leaving analysts to debate the intent behind these transactions.
A day before these Ethereum-based transfers, another seismic shift occurred. A US-linked wallet moved nearly $2 billion worth of Bitcoin BTC $92 074 24h volatility: 2.8% Market cap: $1.82 T Vol. 24h: $70.13 B . This action split 19,800 BTC into two wallets: one received 10,000 BTC valued at $969 million, and the other was credited with 9,800 BTC worth $949 million at the time.
ALERT: US GOVERNMENT MOVING $1.92B BTC TO NEW ADDRESS
— Arkham (@arkham) December 2, 2024
Address: bc1q0av33ktzrkjps8exjex5gtv98vx225uqmzhspm pic.twitter.com/JSELsjFg5T
These Bitcoin holdings are linked to the Silk Road forfeiture, a notorious dark web marketplace founded by Ross Ulbricht. Back in July, Arkham had reported a similar transfer when the US split $2 billion worth of Bitcoin seized from Silk Road into separate addresses.
While Arkham refrained from confirming 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 leverages Coinbase for custodial operations.
As of December 4, the US government reportedly holds over 198,000 BTC, valued at $19.2 billion. With such massive reserves, the recent activity has reignited conversations around the government’s strategy concerning its crypto holdings.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
