The United States government has recently made headlines by transferring $33.6 million worth of Bitcoin and cryptocurrency from a wallet holding funds seized from FTX Alameda Research. According to blockchain data from Arkham, the transactions involved transferring significant amounts of Ether (ETH), Binance USD (BUSD), and other tokens to two unidentified wallet addresses.
US Government Continuous Transfer Spree
The transfers included 5,024 ETH, valued at approximately $18 million, and 13.5 million BUSD.
The transactions were sent to addresses starting with “0x9cd” and “0x9ac,” raising questions about the purpose and destination of these funds. Alongside the substantial ETH and BUSD transfers, the government also moved $1.5 million worth of Shiba Inu (SHIB) tokens and a variety of smaller cryptocurrencies to the same addresses.
The activity involves managing crypto assets seized by the U.S. government due to legal cases. The government has done similar transfers, usually before auctions or sales. These actions aim to recover money for victims or to cover losses from criminal activities. While the exact purpose of these transfers remains unclear, the movement of such large sums has sparked speculation within the crypto community.
US Government $1.9 Billion Bitcoin Transfer
Meanwhile, the government recently transferred nearly 19,800 Bitcoin, worth about $1.9 billion, to Coinbase. This transfer has raised eyebrows, prompting executives, analysts, and crypto advocates to call it a strategic misstep.
United States Space Force engineer Jason Lowery was quick to voice his concerns on social media, declaring that the government’s actions reflect a lack of understanding of the true value of Bitcoin. “There is no price where it makes sense for the US to sell any Bitcoin it has under its control,” Lowery remarked, highlighting the broader implications of such a decision.
Coinbase CEO Brian Armstrong weighed in on the controversy, echoing Lowery’s sentiments, stating that the government should not consider selling its Bitcoin. So far, the US government has moved 25,999 Bitcoin, valued at approximately $2.49 billion, to Coinbase this year.
US Government to Ensure Transparency and Accountability
Recall that the United States government transferred $922 million worth of seized BTC in February.
This transfer came hot on the heels of Bitcoin’s price breaking the $60,000 barrier. As reported by TheCoinRise, the transferred funds were from two cryptocurrency wallets confiscated from Bitfinex in 2016. Bitfinex, a prominent cryptocurrency exchange, had faced legal scrutiny and regulatory actions, resulting in the seizure of funds by US authorities.
The government’s decision to transfer these wallets underscores the complexities of managing seized cryptocurrency holdings amidst a rapidly fluctuating market.
The transfer also highlights the need for clear frameworks to address the handling and de[osition of seized cryptocurrencies. The US government’s actions ensure transparency and accountability in law enforcement actions.
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