US Government Moves $33.6M of Seized FTX and Alameda Research Crypto to Unknown Wallets

On Wednesday, the US government transferred $33.6 million worth of cryptocurrency seized from FTX and Alameda Research to undisclosed wallets.

The US government transferred $33.6 million in cryptocurrency, seized from FTX and Alameda, to two undisclosed wallets on Wednesday.

The move marks the latest government crypto transaction, following the transfer of nearly 19,780 BTC from Silk Road to Coinbase Prime last week.

The government now holds around 198,109 BTC, valued at $19.15 billion, seized in crypto-related criminal cases over the last decade.

The assets transferred include 5,024 ETH (around $18.17 million), $13.58 million in Binance USD (BUSD), and smaller amounts of SHIB, AERGO, and WBTC tokens.

The transfers went to unknown wallets, but on-chain data shows these addresses begin with 0x9ac and 0x9cd.

While the government's motive for the transfer remains unclear, the large sum of cryptocurrency has sparked concerns about the potential impact on crypto markets if the assets are sold on exchanges.

Currently, ETH is trading at $3,704, its highest level since May 2024, and the government's sell-off could introduce significant selling pressure.

This development comes amid ongoing scrutiny of FTX's role in political finance. Recently, Cameron Winklevoss called for an investigation into why US prosecutors dropped campaign finance charges against Sam Bankman-Fried (SBF).

As BeInCrypto reported, Winklevoss argued that such decisions erode public trust in the justice system.

SBF was accused of using customer funds to support political donations, highlighting regulatory gaps.

Meanwhile, FTX has unveiled an ambitious reorganization plan to compensate creditors and revive the brand.

The proposal, set to take effect in January 2025, outlines a strategy to recover value for stakeholders, despite the massive challenges arising from the FTX collapse.