Crypto Government Transfers $90 Million in Bitcoin & Ethereum Seized in Fraud Scheme
Arkham Intelligence recently reported that the US government transferred over $90 million worth of Bitcoin and Ethereum that were previously seized from two Estonian nationals involved in a significant cryptocurrency fraud and money laundering operation. This move has garnered the attention of the cryptocurrency community, especially following the transfer of around $2 billion in Bitcoin tied to the notorious Silk Road marketplace.
Highlights of the Transfer
Using its advanced tracking technology, Arkham Intel detected multiple transactions executed by the US government involving the seized digital assets:
– 0.69 BTC (~$45,750) and 374 BTC (~$24.80 million) were sent to a new Bitcoin address (3GoRwyQvAJhX3conyuq355JiBD9FyfXAQe).
– 218.5 BTC (~$14.49 million) and 4.567K ETH (~$15.21 million) were also moved to the same address.
– 0.0001 BTC and 0.5 BTC were transferred to another new address (3LNW8R3AfDQgVCB9sQPwChyG47ktSjh3f3).
Background of the Seized Funds
The Bitcoins and Ethereums seized were linked to Sergei Potapenko and Ivan Turõgin, two Estonians arrested in October 2022 after facing an 18-count indictment in Washington. The duo was involved in a $575 million cryptocurrency fraud through HashFlare and Polybius Bank, engaging in fraudulent activities such as equipment rental contracts and money laundering via shell companies for personal gains.
US Government’s Action Plan
Today’s transactions mirror a previous move where Silk Road bitcoins were handled:
– 2,000 BTC went to a Coinbase wallet, and the rest to a government wallet identified by Arkham.
– This reflects a systematic approach to consolidating seized digital assets for future actions.
Impact on Crypto Market
Despite these developments, Bitcoin prices have remained stable above $66,000. The handling of such significant assets by the US government continues to intrigue investors and observers in the crypto sphere.
Contrary Beliefs and Future Action
It’s worth noting that the US government doesn’t typically sell Bitcoin or Ethereum on public markets. Instead, assets are handled off-exchange or through auctions, debunking fears of market interference. At current press time, BTC trades at $66,311.
Hot Take: What Lies Ahead for Seized Crypto?
As the crypto community monitors these events closely, the recent transfer of seized Bitcoin and Ethereum raises questions about the government’s next steps and how it will handle these digital assets moving forward. Stay tuned for more updates in the evolving crypto landscape.
By
By
By