Following the U.S. government’s transfer of $2 billion in bitcoin, Arkham Intelligence reported that the federal agency divided the funds into two separate Bech32 bitcoin addresses: one containing 10,000 BTC and the other holding 19,799.99 BTC. Arkham speculates that the 10,000 BTC may have been sent to an institutional custody service.
US Authorities Split $2 Billion in Bitcoin Into 2 Wallets, Igniting Custody and Sale Speculation
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Arkham Reports U.S. Bitcoin Transfer to 2 Wallets, Transfer Fuels Custody vs. Sale Theories
On Monday, the U.S. government moved 29,799.99 BTC from wallets labeled as Department of Justice (DOJ) on Arkham’s platform. At 1:29 p.m. EDT on Monday, Arkham announced on X that the funds had been transferred into two distinct wallets (1, 2). “The U.S. Government has split the $2B Bitcoin into two addresses… We believe this represents a 10,000 BTC deposit to an institutional custody/service,” Arkham wrote.
Bitcoin.com News has published an in-depth analysis of Germany’s sale of 50,000 bitcoin ( BTC). Although some of Germany’s funds were allocated to Coinbase, Kraken, and Bitstamp, 88% was acquired by institutional liquidity providers and over-the-counter (OTC) trading desks. The crypto influencer Marty Party offered an alternative perspective. “IMO: US Marshall Service is sending bitcoin to Coinbase for custodianship. Not to sell,” Marty Party said.
The crypto advocate highlighted that Coinbase was chosen by the U.S. government to store confiscated bitcoins. Many others criticized the Biden and Harris administration for permitting the sale, following former President Donald Trump’s promises to retain seized bitcoins as U.S. reserves if he returned to office. “Just landed in Miami and see the Harris administration is preparing to dump 30,000 bitcoin just to spite DJT,” Bitcoin Magazine CEO David Bailey wrote on X. He added:
Would be a massive political blunder for Dems. If they continue plundering America’s bitcoin they will permanently spurn a generation of voters.
The U.S. government’s Marshals Service has not conducted a formal bitcoin auction since 2020. Since then, federal authorities and other governments, such as Germany, have been utilizing centralized exchanges and OTC services, avoiding the auction method. The last documented U.S. Marshals Service bitcoin auction occurred on Feb. 18, 2020, when the agency sold 4,040 bitcoins. To take part in the auction, buyers were required to place a $200,000 deposit to bid.
What are your thoughts on the U.S. government’s $2 billion bitcoin transfer on Monday? Do you believe it is intended for sale or just being placed in custody? Share your thoughts and opinions about this subject in the comments section below.
