- US gov transferred ~$8.5M in confiscated Bitcoin (Sae Heng case) per Arkham
- Move to new wallets sparks speculation about a potential strategic Bitcoin reserve
- US remains largest sovereign BTC holder (~198k BTC); Bitcoin Act still pending
The U.S. government has moved approximately 97.3 Bitcoin (BTC), valued around $8.46 million at the time, from a wallet holding previously confiscated funds.
Blockchain intelligence platform Arkham identified the transfer occurring from a wallet associated with funds seized from Wanpadet Sae Heng.
The movement of these assets primarily into a new government-controlled wallet immediately fueled speculation about the formation of a strategic Bitcoin reserve by the US, although officials have not provided an official explanation for the transfer.
Details of the Transfer: Origin and Destination
The transferred Bitcoin originated from assets seized during an operation targeting Sae Heng, who was allegedly involved in a fraudulent “pig butchering” scheme. Reports indicate U.S. authorities worked in coordination with Binance to confiscate various cryptocurrencies from Heng during that operation.
Arkham’s on-chain data shows this specific recent transfer sent the bulk of the BTC (worth ~$8.46M) to a newly created ‘change’ address (bc1q7qf). A minimal fraction, about $10 worth of BTC, went to a separate new address (bc1qs0q). Concurrent with the Bitcoin move, approximately 88.4 Ethereum (ETH) (with a reported value near $1.77M at the time) was also transferred from the same source wallet to a different new address (“0xBf7fb”).
Related: Senator Cynthia Lummis Pushes for a U.S. Strategic Bitcoin Reserve
Context: Recent Gov Crypto Moves & Total Holdings
This Bitcoin transfer isn’t an isolated incident regarding government-managed crypto wallets. Just weeks ago, according to Arkham, the same address reportedly moved 299 Avalanche (AVAX) tokens linked to funds seized in a separate case involving Brain Krewson.
Such on-chain movements continue to raise questions about the government’s evolving strategy for managing its considerable cryptocurrency holdings obtained through various enforcement actions. Despite this recent transfer, the U.S. government remains the largest known sovereign holder of Bitcoin, possessing approximately 198,012 BTC currently valued near $17.04 billion (based on recent BTC price levels near $87k).
Strategic Reserve? Bitcoin Act & Global Holdings Context
The lack of official comment on these transfers allows speculation about a potential strategic US Bitcoin reserve to continue. Discussions persist around how such a reserve might be funded, with some suggesting “budget-neutral” mechanisms could be employed, perhaps using existing confiscated assets.
While Senator Bernie Moreno has advocated for Congress’s proposal to be passed before August, its appeal has yet to be fully assessed.
Related: Trump’s Push to Make U.S. the Crypto Capital Gains Momentum
Globally, the US’s known Bitcoin holdings significantly exceed those of other nations reportedly holding Bitcoin, such as China (often estimated second), Bhutan (approx. 9k BTC reported), and El Salvador (approx. 6k BTC reported).
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
