On December 4, 2024, the US government transferred $33.6 million worth of cryptocurrencies to unknown wallets. These were originally seized by FTX and Alameda Research – what is going on here?
The transactions lead to speculation about the future of these assets. There are concerns if they end up on exchanges.
US government moves cryptocurrencies confiscated from FTX
Assets are moving early Wednesday, according to blockchain analytics firm Arkham. This includes 5,024 ETH (approximately $18.17 million) and $13.58 million in Binance USD (BUSD). Likewise, the government is moving smaller amounts of tokens such as SHIB, AERGO and WBTC. The transfers go to unknown wallets, but on-chain data shows that these addresses start with 0x9ac and 0x9cd.
The largest chunk of value transferred, Ethereum (ETH), is trading at its highest level since May 2024 at $3,704. This comes amid a strong crypto market rally, but there are concerns that the liquidation of these assets could introduce significant selling pressure, which could destabilize token prices.
This development also comes amid increased scrutiny of FTX’s role in political financing. Cameron Winklevoss recently called for an investigation into why US prosecutors dropped charges against Sam Bankman-Fried(SBF). He claimed that such decisions undermine public trust in the justice system.
SBF is accused of using client funds for political donations, raising questions about regulatory loopholes. Meanwhile, FTX has unveiled an ambitious reorganization plan to compensate creditors and revitalize the brand. The proposal, set to take effect in January 2025, outlines a strategy to restore value to stakeholders despite significant challenges posed by the FTX collapse.
Read more: That was behind the FTX collapse
The US government’s latest move falls in line with a series of crypto transactions, including the transfer of nearly 19,780 BTC seized from Silk Road to Coinbase Prime just days earlier. The government’s current holdings include approximately 198,109 BTC worth $19.15 billion seized in crypto-related criminal cases over the last decade.
The U.S. government’s recent activity highlights changing policies regarding the handling of confiscated crypto assets and highlights concerns about transparency and market influence. As regulatory debates and corporate restructuring continue, the interplay between crypto markets and governance remains a critical area of focus.
Disclaimer
In accordance with Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This article aims to provide accurate and up-to-date information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on this content.
