US Government Moves $11M in Seized Ethereum to Anon Address

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As an analyst with a background in blockchain forensics and financial markets, I find the recent transactions involving Ethereum (ETH) and Bitcoin (BTC) held by the US government intriguing. The transfer of $11.75 million worth of ETH from an address associated with the US government to another unknown address has sparked speculation in the crypto community about a potential selloff.

As a crypto investor, I came across some intriguing news today. According to my sources, an address linked to the United States government, specifically “0x05…e049” as reported by Arkham Intelligence, transferred 3,375 Ethereum (ETH). This equates to approximately $11.75 million at the time of the transaction. The destination address remains unknown.

Notably, a unit of ETH is now trading at $3,477.20 after a 2.55% increase in the last 24 hours.

Ethereum Loot Seized from Estonian Nationals

At 16:34 UTC+8 on Monday, an Ethereum transaction was carried out to the address “0x5a…1871”. Notably, this US-based address is where the seized crypto assets are kept, which were originally owned by Estonian crypto entrepreneurs Sergei Potapenko and Ivan Turõgin. The two Estonian nationals have been linked to a large-scale cryptocurrency scam involving HashFlare, a supposed mining service that turned out to be a Ponzi scheme.

As a researcher investigating an alleged case of deceit, I’ve come across claims that Potapenko and Turogin enticed investors to hand over their funds under false pretenses. They reportedly promised lucrative returns from their crypto activities and associated endeavors.

As a researcher studying this case, I discovered that these individuals’ unlawful actions drew the scrutiny of authorities, ultimately resulting in their apprehension in November 2022. An indictment with 18 counts was subsequently filed against them in the Western District of Washington. The charges encompassed a conspiracy to commit wire fraud, 16 counts of wire fraud, and one count of conspiring to launder money. Each entrepreneur confronted a potential sentence of up to 20 years in prison for every offense.

I, as an analyst, can share that prior to seizing the ill-gotten cryptocurrencies, the US government held approximately 216.788 Bitcoins (BTC) in their possession. After confiscating these digital assets, they have remained under the government’s custody.

US Government Crypto Transfers Sparks Speculations of a Selloff

In the past few weeks, the US government has handled a multitude of transactions in addition to the recent ETH transfer. According to Arkham Intelligence’s findings, another government address that previously held seized funds moved 11.84 Bitcoins, worth approximately $726,000 at the time, to a new address “3KHnTq…muuso9”.

Although this $11 million Ethereum transfer seems insignificant at first, it’s believed to be a trial run for a more substantial move in the future. This transaction serves as evidence of investors’ cautious stance. Given the regularity of these transfers, there are concerns of an impending sell-off that could potentially deepen crypto price drops. This pessimistic view arises as these transfers occur during market instability and volatility.

According to CryptoQuant CEO Ki Young Ju’s perspective, the US government’s Bitcoin sales should not cause major market disruptions because the involved exchanges possess sufficient liquidity to manage the transactions.

Instead of “On the other hand,” you could use “Contrarily, but” or “However, in contrast,” to introduce Adam Back’s perspective. As for paraphrasing his statement about potential benefits for long-term Bitcoin holders, try this:

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2024-07-01 16:16