US Govt. Transfers $131M in Seized Bitcoin to Coinbase

The US government has transferred 2,000 BTC ($131.65 million) to Coinbase Prime, according to blockchain tracking firms. The government has significantly increased its crypto holdings through seizures, currently holding 213,246 BTC ($14.13 billion) and $4.3 million worth of ETH. Despite past criticism of poor timing in crypto sales, with previous sales resulting in significant losses, the government's BTC holdings have appreciated, with 9,861 BTC sold in March 2023 now worth $654.4 million.

US Government Transfers $131 Million Worth of Confiscated Bitcoin to Coinbase

In a significant move, the United States government has transferred over $131 million worth of seized Bitcoin (BTC) to a digital asset exchange, Coinbase. This transaction, amounting to 2,000 BTC, forms part of a larger transfer of 30,174.703 BTC (worth approximately $1.98 billion), as reported by blockchain-tracking firms, including Lookonchain and Arkham.

Confirming the transfer to Coinbase Prime wallet, Julio Moreno, head of research at blockchain analytics firm CryptoQuant, asserted that the 2,000 Bitcoin deposited were subsequently sold. These BTC originated from the vast sum confiscated from James Zhong, who pleaded guilty to wire fraud charges stemming from his alleged manipulation of transactions on the notorious darknet marketplace Silk Road.

Despite this latest transfer, the US government continues to hold substantial cryptocurrency assets, with Arkham estimating a balance of approximately 213,246 BTC (worth $14.13 billion). Additionally, the government possesses around $4.3 million worth of Ethereum (ETH).

The government's cryptocurrency sales have occasionally proved ill-timed. In March 2023, it sold 9,861 BTC, then valued at $216 million. However, the same amount of Bitcoin today is worth over $654.4 million, highlighting the volatility of digital asset markets.

At the time of writing, Bitcoin is trading at $66,303, representing a 2% increase in the past 24 hours but a decline of over 4% in the past week. This volatility underscores the importance of prudent management and informed decision-making regarding cryptocurrency assets.