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2 clusters · 14 sources · 9 days · First seen · Last updated

US government movement of seized cryptocurrency

Overview

The United States government has transferred hundreds of millions of dollars in seized cryptocurrency to addresses associated with Coinbase Prime. These transfers, totaling between approximately $470 million and $565 million, include various digital assets such as Bitcoin (BTC), Wrapped Bitcoin (WBTC), Tether (USDT), and Binance Coin (BNB).

The assets are linked to several major legal cases and cybercrimes, including the 2016 Bitfinex hack, the HashFlare fraud case, and assets related to Alameda Research and FTX. Recent reports from blockchain analytics firms Arkham Intelligence and Galaxy Research indicate that these movements occurred over several days in October. Notably, Galaxy Research identified approximately 2,456 BTC originating from previously unrecognized government wallets, suggesting a larger-than-expected cryptocurrency inventory held by federal authorities.

The movement of these funds has led to market speculation regarding potential liquidations. While the transfer to an institutional custodian does not confirm an intent to sell, it often precedes such actions. This occurs alongside a policy to establish a Strategic Bitcoin Reserve, which includes a directive that Bitcoin held in the reserve ‘shall not be sold’. However, analysts note that exceptions to this mandate may exist for legal mandates and victim compensation, leaving it unclear whether these specific seized assets are subject to the reserve’s restrictions or if the transfers are for administrative custody and victim restitution purposes.

Entities

US Marshals Service · US government · Coinbase Prime · U.S. government · U.S. Marshals

Claims

What the coverage asserts, and how many sources carry each claim.

Timeline

  1. [BUSINESS] 12 sources
    US Government moves hundreds of millions in seized crypto to Coinbase Prime

    The US government transferred hundreds of millions of dollars in seized Bitcoin and Tether to Coinbase Prime, including assets from the Bitfinex hack and newly identified government holdings.

  2. [TECHNOLOGY] 2 sources
    Massachusetts prosecutors seek forfeiture of USDT stolen in Coinbase impersonation scam

    U.S. prosecutors have filed for the civil forfeiture of over 110,000 USDT suspected of being stolen via a Coinbase impersonation scam.

Sources

ambcrypto.com · blockmedia.co.kr · coin-turk.com · coindeskjapan.com · criptonoticias.com.br · crypto-times.jp · cryptobriefing.com · cryptoslate.com · mycryptoparadise.com · news.bitcoin.com · nosmokesport.com · tdpelmedia.com · tokenpost.kr · tronweekly.com

This summary has been updated 1 time: see revision history