US Government Moves $131 Million in Bitcoin Seizure to Coinbase

The US government has transferred over $131 million worth of seized Bitcoin (BTC) to Coinbase, according to on-chain data. Blockchain tracker Lookonchain and intelligence firm Arkham confirmed the transfer of 30,174.703 BTC, of which 2,000 BTC went to the Coinbase Prime wallet. Julio Moreno of CryptoQuant suggests the transferred BTC was sold, originating from the seizure related to James Zhong's wire fraud case. Despite the sale, the US government still holds approximately $14.13 billion worth of BTC and $4.3 million in Ethereum (ETH).

US Government Transfers $131 Million Worth of Bitcoin to Coinbase, Part of Larger Crypto Seizure

Washington, DC - The United States government has transferred over $131 million worth of seized Bitcoin (BTC) to Coinbase, according to blockchain-tracking firms.

Massive Bitcoin Movement

Data from blockchain tracker Lookonchain reveals that the US government recently transferred a total of 30,174.703 BTC, valued at approximately $1.98 billion. Of this amount, 2,000 BTC, worth $131.65 million, was transferred to a Coinbase Prime wallet.

Blockchain intelligence firm Arkham confirms the Coinbase Prime transfer.

Origin of the Bitcoin

CryptoQuant's head of research, Julio Moreno, has determined that the 2,000 Bitcoin sent to Coinbase were sold. The cryptocurrency is believed to have originated from a large seizure related to James Zhong, an individual who pleaded guilty to wire fraud charges after being accused of manipulating transactions on the darknet marketplace Silk Road.

Government Crypto Holdings

The US government, which has acquired a substantial amount of Bitcoin through criminal prosecutions, still holds approximately 213,246 BTC, valued at $14.13 billion, according to Arkham. The government also possesses around $4.3 million worth of Ethereum (ETH).

Unfortunate Timing

The government's recent crypto sales have not always been well-timed. In March 2023, the government sold 9,861 BTC for approximately $216 million. However, with the surge in digital asset prices, the same amount of Bitcoin would be worth over $654.4 million today.

Bitcoin Market Performance

At the time of writing, Bitcoin is trading at $66,303. The cryptocurrency has experienced a 2% increase in the past 24 hours but has declined by over 4% in the past week.

Conclusion

The US government's transfer of Bitcoin to Coinbase is part of its continued efforts to manage its seized cryptocurrency assets. While the sale of 2,000 BTC has netted the government a significant sum, the timing of the sale could have been more advantageous. The government's remaining crypto holdings remain substantial and are subject to ongoing market fluctuations.