Crypto Market Alert : The U.S. Govt Transfers $17.2M ETH, 54.8B SHIB, and More

The post Crypto Market Alert : The U.S. Govt Transfers $17.2M ETH, 54.8B SHIB, and More appeared first on Coinpedia Fintech News

The U.S. government has once again moved significant amounts of cryptocurrency seized during legal battles involving FTX and Alameda Research. This latest development adds to the ongoing management of billions of dollars in digital assets confiscated from high-profile crypto collapses. These massive transfers are creating a panic in the bullish crypto market which saw a consecutive green after months of stagnant phase. Bitcoin is hovering around $96K and altcoins are also making good gains with regulations at ease. At this moment these US transfers tell a different story. 

Let’s dive into the insight.   

Massive Transfers of SHIB and ETH

On December 3, Arkham Intelligence reported that 54.8 billion Shiba Inu tokens (SHIB), valued at $1.55 million, were transferred to a new wallet. Shortly after, $17.2 million worth of Ethereum (ETH) followed, sparking attention from blockchain analysts monitoring government wallet activities.

Beyond SHIB and ETH, the U.S. government also moved several smaller assets, including 13.5 million Binance USD (BUSD), $36,070 of Axie Infinity (AXS), and $296,000 in various other cryptocurrencies. These included Compound (COMP), Numeraire (NMR), Wrapped Bitcoin (WBTC), and Yearn Finance (YFI).

Bitcoin Seizures Continue

In addition to the recent FTX-related transfers, Bitcoin seizures remain a major focus. Earlier this year, the government moved nearly $2 billion worth of Bitcoin to new wallets. These transactions were linked to earlier cases, such as the Silk Road investigation, highlighting the scale of digital assets under federal control.

As of now, the U.S. government holds a staggering $19.48 billion in digital assets, primarily Bitcoin, Ethereum, USDT, WBTC, and BNB. These holdings reflect the outcomes of several high-profile crypto investigations, including FTX’s collapse in November 2022 due to alleged mismanagement.

Implications for the Crypto Market

The U.S. government recently moved seized cryptocurrencies, including $17.2 million in Ethereum, just as the crypto market is rallying. In the meanwhile, Ethereum has risen to $3,643, and November saw a record $183.74 billion in trading volume. The government also moved 54.89 billion SHIB, which has raised serious selling pressure on the market. While it’s unclear what will happen to these assets, it highlights the growing role of digital currencies in legal matters and regulations.