US Govt Selling Crypto Worth Millions Seized From Bitfinex Hacker?

As a seasoned analyst with years of experience in deciphering cryptocurrency market movements and understanding the intricacies of government actions, I find myself intrigued by this latest development. The US Government’s wallet activity, particularly the $20 million worth of crypto assets shifted to another address, has sent ripples across the market.


In an unexpected twist, it’s been reported that a U.S. government digital wallet has been breached, causing ripples throughout the wider market. On Friday, data from the blockchain showed that the U.S. government started transferring or selling approximately $20 million in cryptocurrencies such as ETH, USDT, USDC, and aUSDC to another account.

Simultaneously, some of the reallocated money was later documented as being sold on a cryptocurrency platform. Financial aficionados ponder if these transactions could be connected to the U.S. government’s approach in the case between the United States and Lichtenstein.

Is The US Govt Selling Crypto Related To Bitfinex Hack?

Based on the most recent information from Arkham Intelligence dated October 25th, it seems that the U.S. Government-related address 0xc9E may have been hacked or unauthorizedly accessed. Of particular concern is the transfer of approximately $20 million worth of USDC, USDT, aUSDC, and ETH to another wallet at 0x348 from the government-linked account.

Furthermore, it’s worth mentioning that transactions showing 0x348 as the destination were later logged as being converted into other assets. Additionally, data from Lookonchain indicates that a significant amount of 148 ETH was offloaded to Binance, one of the leading crypto trading platforms, on the current date.

It’s interesting to note that the US government wallet with address 0xc9E received cryptocurrency funds linked to the Bitfinex hack from nine other wallet addresses, including 0xE2F. Notably, the same address 0xE2F was mentioned in court documents related to the seizure of Bitfinex hacked funds.

As an analyst, I’ve noticed that Arkham’s latest post suggests that the cryptocurrency from the US government wallet at 0x348 has started being sold. This revelation has generated a significant stir throughout the crypto market, with some speculating that these sell-offs could be part of the U.S. government’s strategy in response to ongoing legal proceedings.

United States v. Lichtenstein Lawsuit Developments Add Speculations

Recently, CoinGape Media had shared that Ilya Lichtenstein, the architect behind the Bitfinex exchange $6 billion hack, is facing intensified attention from regulatory bodies due to the United States v. Lichtenstein lawsuit. After the Bitfinex exchange hack, U.S. prosecutors have proposed a minimum 5-year prison sentence for Lichtenstein, as this hack was one of the most significant crypto hacks ever documented in history.

In light of recent government developments, there’s been an increase in speculation that the U.S. government might sell cryptocurrencies. This speculation stems from a potential compromise. Moreover, according to Arkham’s post, the perpetrator utilized a money laundering service for the crypto liquidation process.

In essence, observers are closely scrutinizing spending patterns to get a better understanding of the situation, as noted by CoinGape, this was the initial AAVE transaction conducted by the U.S. government since February.

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2024-10-25 11:48