US Government moves $20M in crypto after 8 months of inactivity

The US government has moved over $20 million in funds, according to reports from Arkham Intelligence.

~$20M IN US GOVERNMENT ASSETS MOVED TO NEW ADDRESS pic.twitter.com/MXgi9mderO

— Arkham (@ArkhamIntel) October 24, 2024

The wallet, labeled as a US government-controlled address containing Bitfinex’s seized funds, showed activity for the first time in over eight months.

Looking at the transactions through Arkham Intelligence’s platform, the US government-linked wallet first withdrew $5.45 million in USDC from Aave. Shortly after, another transaction pulled $1.12 million in USDT from the platform.

Within minutes, approximately $20 million in total assets were moved to a new address, raising further speculation.

The wallet, identified by Arkham as containing funds tied to the Bitfinex hack, has been under government control and monitored closely. The sudden and significant movement of assets, particularly after months of inactivity, highlights a possible reorganization of these seized funds.

These transactions raise many questions about the motives behind the US government’s wallet activity, including why they are using DeFi services like Aave, a platform known for facilitating decentralized borrowing and lending.