U.S. Executes Massive $1.92B Bitcoin Transfer In 2024

The U.S. government transferred $1.92 billion worth of Bitcoin. The U.S marshal services partnered with Coinbase Prime to manage “Class 1” digital assets.

The United States government recently transferred 19,800 Bitcoin (around $1.92 billion) from a government wallet. Of the total amount transferred, 10,000 BTC was sent to Coinbase and the remaining 9,800 BTC was transferred to a new wallet.

This marks the second large-scale Bitcoin transfer by the U.S. government in 2024, highlighting the government's increasing involvement in the cryptocurrency space, especially in light of the massive Bitcoin seizures from criminal activities.

According to several crypto trackers and on-chain analysis platforms, the U.S. government total Bitcoin transfers for the year now stand at 25,999 BTC. Moreover, the U.S. government still owns more than 183,850 BTC, which is currently valued at approximately $17.57 billion.

The government's large crypto holdings and active participation in the crypto market make it a key player in the overall cryptocurrency landscape.

Earlier this year, in July, the U.S. Marshals Service announced a partnership with Coinbase Prime to handle the custody and management of its "Class 1" large-cap cryptocurrency, integrating financial technologies into government operations.

This move is intended to enhance the secure management of digital assets and operational efficiency of the government's digital asset portfolio. Coinbase Prime will be responsible for the custody and management of all digital assets seized in government operations.

This approach enables the protection of large quantities of digital assets and improves the government's capacity to manage them effectively.

In a separate development, the U.S. Department of Justice (D.O.J) seized over 50,676 Bitcoin (then valued at over $3.36 billion) from the home of James Zhong in Gainesville, Georgia.

The seizure was part of a large-scale cryptocurrency enforcement operation. The BTC was concealed in various electronic gadgets throughout the house, and the search was authorized by a court warrant.

Zhong later pled guilty to wire fraud charges in November 2022 for the illegal acquisition of Bitcoins from the Silk Road dark web marketplace in 2012. The U.S. government pursued the forfeiture of approximately 51,680 BTC, real estate properties and cash seized during the raid.