U.S. Government Transfers $33.6 Million in Seized FTX Crypto to Strange Addresses

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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December 4, 2024 11:12 EST

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Seized cryptocurrency assets worth $33.6 million were moved from FTX and Alameda Research wallets to undisclosed addresses by the U.S. government on Tuesday.

U.S. Transfers Millions in Seized Crypto to Mystery Wallets

According to the blockchain analytics platform Arkham, the transferred assets include 5,024 ETH (approximately $18.17 million) and $13.58 million in Binance USD (BUSD).

Additionally, smaller quantities of tokens such as SHIB, AERGO, and WBTC were part of the transaction.

These assets were traced to wallets starting with 0x9ac and 0x9cd, but the purpose of the transfers remains unclear, fueling speculation about their ultimate destination.

While the reason for these transactions has not been disclosed, they occur against the backdrop of intensifying scrutiny over the actions of former FTX executives and their financial misconduct.

Caroline Ellison, the former CEO of Alameda Research, recently had her prison release date revised to July 2026, reducing her sentence to one year and seven months.

Her cooperation with investigators has raised further questions about the leniency granted to key figures in the FTX scandal, deepening concerns over how justice is applied in these high-profile crypto fraud cases.

Managing Seized Crypto: Challenges and Market Implications

The US government’s management of seized crypto assets has been scrutinized before, notably when nearly 19,780 BTC linked to Silk Road crimes was transferred to Coinbase Prime on December 2.

With over 198,000 BTC currently held by the government, valued at $19.15 billion, its strategy for handling these assets has become a focal point in regulatory discussions.

Transparency in managing seized crypto assets remains contentious, with calls for clear government plans to build trust and stability in the crypto ecosystem.

Amid these developments, FTX has unveiled a restructuring plan to repay creditors and restore its brand.

Scheduled to launch in January 2025, the proposal reflects the lingering fallout from the company’s collapse and aligns with mounting calls for stricter oversight in crypto markets to avert future collapses.