Bitcoin Wallets Linked to US Government Move $922 Million Worth of Assets
Bitcoin wallets connected to the United States government have seen a significant movement of assets, with a total value of $922 million, following the surge in Bitcoin’s price to $60,000. These transactions included 15,085 BTC and were executed as buying momentum from bulls continued.
Government Transactions
The on-chain data from Arkham Intelligence reveals that accounts associated with the US government conducted four transactions on February 28. The first transfer involved 1 BTC worth $60,000, followed by a second transfer of 2,817 BTC valued at approximately $172 million at the time. Subsequently, they made two more transfers of 0.01 BTC and 12.267 BTC, totaling $748 million.
The wallets involved in these movements are linked to Bitcoin that was seized following the Bitfinex hack in 2016.
Stolen Bitcoin Value Surpasses $7 Billion; Edward Snowden Makes Predictions
In 2016, approximately 119,755 BTC worth over $72 million was stolen from Bitfinex. With the recent surge in Bitcoin’s price, this stolen amount is now valued at over $7 billion.
The spike in Bitcoin’s valuation can be attributed to institutional inflows after the United States Securities and Exchange Commission (SEC) approved a spot Bitcoin ETF.
Edward Snowden, a well-known technology specialist, predicted that information about a national government buying Bitcoin would be revealed this year. He also referred to Bitcoin as “the modern replacement for monetary gold.”
Prediction: A national government will be revealed this year to have been buying Bitcoin—the modern replacement for monetary gold—without having disclosed that fact publicly.
– Edward Snowden (@Snowden) February 28, 2024
Background of the Transactions
After the Bitfinex hack, authorities took action against IIya Lichtenstein, the suspected perpetrator who was accused of stealing the assets.
In 2023, the United States Department of Justice (DOJ) confirmed that about 95,000 BTC was in Lichtenstein’s possession following seizures.
A recent Bloomberg report revealed that Lichtenstein appeared in court a day before the asset transfers. He confessed to using Bitcoin Fog multiple times to launder the stolen assets.
“US prosecutors have accused Roman Sterlingov of operating the mixing service, which they claim received tens of millions of dollars from darknet markets known for trafficking in illegal drugs. Sterlingov’s attorney, Tor Ekeland, has argued that there is no evidence such as eyewitness accounts and server logs to link his client to running the mixer.”
Lichtenstein explained that his motivation for the theft stemmed from his struggling tech start-up at the time. He also provided more information about the 2016 incident.
Last year, Lichtenstein and his wife were arrested on charges of conspiracy to launder $4.5 billion worth of assets. The government seized $3.6 billion of the stolen funds.
Hot Take: Government Bitcoin Buys and US Transfers Following Price Surge
The recent movement of Bitcoin assets linked to the US government has raised speculation and interest within the cryptocurrency community. While some analysts suggest that these transfers may have been for law enforcement purposes, others believe it indicates government involvement in Bitcoin.
Edward Snowden’s prediction adds fuel to this speculation, suggesting that a national government has been secretly buying Bitcoin as a replacement for traditional gold reserves.
As the value of stolen Bitcoin continues to rise, it raises questions about the security of cryptocurrency exchanges and the measures taken by governments to combat cybercrime in the crypto space.
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