Government Moved $100M in Crypto Tuesday — And Stiffed the Treasury's Sales Pitch 🏛️

Wallets tagged as U.S. government-controlled transferred more than $100 million in digital assets on Tuesday, according to blockchain intelligence firm Arkham. The movement included approximately $71.6 million in bitcoin and roughly $31.6 million in BNB, but no sale has been confirmed.

The bitcoin leg totaled 833.599 BTC and was split between holdings from two separate enforcement actions. Arkham labels 568.7 BTC as funds forfeited in the Potapenko-Turogin case and 264.9 BTC as assets seized in connection with the Bitfinex hack. The coins were first sent to two unlabeled addresses before being forwarded to addresses flagged by Arkham as Coinbase Prime deposit addresses.

A separate government-labeled wallet moved about 40,285 BNB, valued at $31.63 million, originally seized from Alameda Research. Those tokens were routed first to address 0x7F68F63fB3A9CCCf352409603421E0A574FbAD90 and then on to 0x6fB3Fe7b7E78AbB84CE007cBC7412C850B15A579.

Despite the size of the transfer, the government's overall position remains massive. Wallets still hold roughly $27.5 billion in seized cryptocurrency, all acquired through enforcement actions rather than taxpayer-funded purchases.

The movement reignited speculation about an impending liquidation, though on-chain behavior suggests otherwise. "A transfer is not the same as a sale. Under a March 2025 executive order, bitcoin forfeited to the government is meant to be held in a Strategic Bitcoin Reserve," market commentator Jose Rosell wrote on X.