According to blockchain firm Arkham Intelligence, The United States government has moved $1.9 billion worth of seized Bitcoin (BTC) to Coinbase Prime.
The move comes amid growing conversations about establishing a strategic BTC reserve in the US under the incoming Trump administration.
US Shifts Seized BTC
The transaction involves almost 19,800 BTC seized in 2021 during an investigation into James Zhong’s Silk Road-related activities. Zhong is convicted of wire fraud after authorities discovered hidden BTC. The Department of Justice had previously seized over 50,000 BTC from Zhong, with the government retaining almost $18 billion worth of BTC. While the reason for the transfer is unknown, speculations are rife that the government could sell off the BTC or repurpose the stolen funds.
“JUST IN: US Government moves $1.92 billion worth of #Bitcoin to a new address.”
The transferred funds were sent to two wallets, each containing $969 million and $949 million in BTC respectively. The government still holds over $18 billion worth of BTC. The transfer of BTC comes with many expecting President-elect Donald Trump to make significant headway on a Bitcoin reserve bill early in his second term. However, Coinbase Prime has partnered with the US government to manage crypto assets linked to seizures and part of the broader enforcement landscape. Meanwhile, calls to pardon Silk Road founder Ross Ulbricht have intensified, with Trump facing renewed pressure to act on his campaign promises.
Trump’s Crypto Plans
The decision could significantly impact Donald Trump’s plans to create a strategic Bitcoin reserve. Trump promised he would not sell any of the country’s BTC holdings. US Senator Cynthia Lummis introduced the BITCOIN Act to establish a strategic reserve this year. The US is not the only country planning to establish a strategic reserve. Poland has seen a presidential candidate make a similar promise to create a reserve. Brazil is also looking to create a sovereign BTC reserve.
BTC’s Stunning Month
BTC stunned market watchers during November, registering an increase of almost 40% as it surged towards $100,000. However, its rally has stalled just short of the $100,000 mark, with the price falling from an all-time high of $99,655 on November 23. BTC’s latest rally has been driven by several factors like Donald Trump’s election victory, growing prospects of a clear regulatory framework, and a crypto-friendly administration. Trump has also promised to keep the SEC in check and will likely appoint a crypto-friendly SEC Chair after Gary Gensler steps down.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.