U.S. Govt Moves $10.3 Million in BTC and ETH to New Wallets

• The U.S. government moved $10.3M in crypto from seized wallets to new addresses.
• BTC liquidation events reflect the market’s volatility with high moves in recent months.
• The government’s action shows efforts to regulate and track illicit crypto activities.

The U.S. government recently moved $10.3 million worth of Bitcoin (BTC) and Ethereum (ETH) to new wallets. According to data from SpotOnChain, 97.34 BTC worth $8.52 million and 884.33 ETH worth $1.73 million were transferred, and the time span between the transactions was just 40 minutes. Currently, the U.S. Government has $17.4 billion as its balance. 

Seized Funds and Legal Implications

Further analysis into the fund transfer revealed that the assets were part of the ‘San-Heng Confiscated Funds’, marked as government-controlled addresses. Wanpact Sae-Heng, a Thai National, targeted U.S. citizens using a ‘pig butchering scheme’. With the aid of Binance, the U.S government took control of the funds.

Notably, the U.S. government controls about 54 addresses, wherein it holds 198.4k BTC worth $17.3 billion and 58k ETH worth $116 million. This fact indicates that the government actively participates in securing and managing confiscated assets.

Ongoing Regulation of Cryptocurrency

The transfer underscores the government’s continued efforts to regulate digital assets linked to illicit activities. The funds are likely to be used for legal procedures or restitution to victims of scams. As the government works to manage these assets, it also aligns with broader strategies to track cryptocurrency transactions effectively.

Moreover, the government’s handling of these digital assets reveals its increasing involvement in overseeing cryptocurrency markets. This move highlights its broader objectives of securing digital assets and ensuring they are managed under U.S. law enforcement practices.

Related: Bitcoin ETFs Hit $36.34B in Total Inflows After $89M Boost

Bitcoin Liquidation Trends and Volatility

As per Coinglass data, Bitcoin’s liquidation trends have shown fluctuations, reflecting volatility in the market. Recent months have seen a rhythmic engagement between short liquidations (depicted in red bars) and long liquidations (depicted in green bars), perfectly showcasing how liquidations align with Bitcoin’s price. In September 2022, the price of Bitcoin did very well to advance and then near-highs near $69K, resulting in a liquidation event reaching to $558 million. 

Source: Coinglass

In March 2023, Bitcoin prices fluctuated between $60K and $80K, triggering another wave of liquidations. Such price movements highlight a potential causal link between volatility and liquidations, serving as key indicators for assessing market risk, particularly for leveraged traders in cryptocurrency markets.

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