U.S. Government Moves $2.24 Billion in Bitcoin, Altcoins from Seized Reserves

The U.S. government has recently been observed transferring significant amounts of cryptocurrency from its reserves, sparking speculation and raising questions about its activities in the crypto space. These transfers include the movement of Bitcoin and Ethereum, with some funds being routed to a “change wallet.” Additionally, an Avalanche (AVAX) token transfer was linked to an address traced back to the government, further fueling curiosity about the government’s management of confiscated cryptocurrencies.

The U.S. government’s last major Bitcoin sale occurred in March 2023, when it sold $215.5 million worth of Bitcoin seized from Silk Road hacker James Zhong. Zhong was arrested for unauthorized acquisition of large amounts of Bitcoin from the Silk Road marketplace, a notorious black-market website. This sale was significant as it helped the U.S. government manage its growing crypto holdings. However, recent analysis suggests that this was not the only Bitcoin sale made by the government during this period.

A deeper examination of on-chain data by Arkham Intelligence indicates that the U.S. government may have sold an additional $2.24 billion worth of Bitcoin, also linked to Zhong’s Silk Road seizures. This estimated sale is thought to have taken place between June 2023 and December 2024. The revelation highlights the extent of Bitcoin holdings currently in the government’s possession and the potential actions it might take with these assets.

The U.S. government’s administration of forfeited cryptocurrencies has also come under scrutiny. Among the measures included in its policy is the development of a special reserve to manage seized digital assets, primarily Bitcoin. This effort is part of a broader strategy to regulate and stabilize the market through the balanced release or transfer of cryptocurrencies.

In addition to its Bitcoin reserve, the U.S. government has established a separate stockpile for altcoins, which are cryptocurrencies other than Bitcoin. This move indicates the government’s intention to own and potentially sell altcoins as part of its ongoing management of crypto assets. While the specific altcoins in the reserve are unknown, the government’s strategic reserves suggest a broader vision for the role of cryptocurrency in the global economy and its increasing value in the financial world.

Meanwhile, a fabricated video of former U.S. President Donald Trump has been circulating on social media, adding to the intrigue surrounding cryptocurrency in U.S. politics. The manipulated video depicts Trump in the Oval Office, supposedly revealing the whitepaper of Bitcoin to the world. In the video, Trump replaces Satoshi Nakamoto’s initial manifesto with a framed version of the Declaration of Independence. The video was quickly flagged as false and manipulated, with social media platforms taking swift action to remove it.