US Government Moves $1.91M in Alameda-Seized Bitcoin

• The US government moves 24.408 BTC worth $1.91 million seized from Alameda.
• U.S. holds 324,527 BTC ($25.56B), making up most of its $25.87B crypto portfolio. 
• The move comes as Bitcoin price rebounds, though no sale has been confirmed.

The U.S. government moved 24.408 Bitcoin on Wednesday from a wallet containing assets it seized from FTX and Alameda Research

The transaction has raised questions about whether the government is preparing to liquidate more of the BTC seized from the bankrupt crypto firms.

Moving Bitcoin Seized From Alameda Wallets

Blockchain intelligence platform Arkham flagged the transaction on X, stating that the U.S. government moved a small amount of Bitcoin seized from Alameda accounts on Binance.US three years ago.

Arkham’s dashboard shows 24.408 BTC, worth about $1.91 million at the time of the transaction, was transferred from a wallet identified as “FTX Alameda Seized Funds.”

The movement does not confirm that the Bitcoin has been sold. However, Arkham questioned whether the transfer could precede a larger sell-off of Alameda’s remaining BTC holdings. 

US Government Holds More Than $25 Billion in Bitcoin

Arkham’s data shows that the U.S. government holds 324,527 BTC worth $25.56 billion. Its total cryptocurrency holdings are worth about $25.87 billion, with the remainder in assets including USDT ($125M), WBTC ($59M), Ethereum ($43.4M), and BNB ($23.37M).

Given the size of the government’s Bitcoin holdings, every transfer attracts attention in the crypto community. 

Previous FTX-Alameda Asset Movements

The U.S. government has moved other assets seized from FTX and Alameda in recent months. On July 15, Arkham reported that the government transferred $9.29 million worth of ETH seized from FTX and Alameda to Coinbase Prime. 

At the time, Arkham asked whether the Ethereum would be sold or returned to FTX creditors. However, no further movement of that ETH had been observed since then.

The same day, the government also moved approximately $19.62 million in USDT and transferred around $250,000 worth of SHIB seized from FTX and Alameda. Arkham said the SHIB would remain under government control and be used to repay creditors.

Government Moves Alameda BTC as Price Rebounds

The latest Bitcoin transfer also comes under very different market conditions. During the earlier period, the crypto market was in a severe downturn, with Bitcoin falling to a cycle low of approximately $57,747.

Bitcoin has since staged an impressive rebound of over 40%. It reclaimed $81,235 this week, marking its first return to that level since May, before pulling back. At the time of the latest government Bitcoin movement, BTC was trading around $78,700.

The timing suggests the U.S. government seeks to take advantage of the stronger market to liquidate some of its seized Bitcoin. However, the movement of 24.408 BTC alone provides no confirmation that a sale is imminent.

Related: Bitcoin Price Stalls Below $80K as Profitable Holders Keep Selling