US Govt Moves $90 Million in Bitcoin, ETH From Estonian Scammers
04 April 2024 - 11:00PM
NEWSBTC
In the early US hours, Arkham Intelligence reported that the United
States government had transferred over $90 million worth of Bitcoin
and Ethereum, previously seized from two Estonian nationals
involved in a vast cryptocurrency fraud and money laundering
scheme. This move captured the attention of the cryptocurrency
community, just days after the transfer of approximately $2 billion
in Bitcoin related to the infamous Silk Road marketplace. Arkham
Intel, utilizing its advanced tracking technology, noted that just
two hours ago, the US government executed multiple transactions
involving the seized digital assets. These included the transfer of
0.69 BTC, worth approximately $45.750, and another 374 BTC, valued
at around $24.80 million, to a newly identified Bitcoin address
(3GoRwyQvAJhX3conyuq355JiBD9FyfXAQe). Additionally, 218.5 BTC,
worth $14.49 million, were also moved to the same address, along
with 4.567K ETH, equating to $15.21 million. Just minutes prior to
press time, another 0.0001 BTC and 0.5 BTC were moved to
another new address (3LNW8R3AfDQgVCB9sQPwChyG47ktSjh3f3). Both the
Bitcoin and Ethereum addresses are new and previously unknown to
Arkham, suggesting a strategic consolidation rather than an
immediate liquidation of assets. Related Reading: Bitcoin Stuck
Below $66,000: Are ETF Outflows Beyond Grayscale An Issue? The
seized funds originate from Sergei Potapenko and Ivan Turõgin, two
Estonians arrested in their home country in October 2022 following
an 18-count indictment by a grand jury in the Western District of
Washington. The duo was implicated in orchestrating a $575 million
cryptocurrency fraud through their ventures, HashFlare, a
cryptocurrency mining service, and Polybius Bank, a virtual
currency bank that never existed nor returned promised dividends to
investors. Their elaborate scheme not only involved fraudulent
equipment rental contracts but also utilized shell companies for
laundering the proceeds to acquire luxury real estate and vehicles.
In September last year, the Estonian government approved the
extradition of Potapenko and Turõgin to the United States. Estonian
Prime Minister Kaja Kallas revealed at that time that the decision
had been made at the government level. Today’s transactions by the
US government follow a precedent set by the movement of Silk Road’s
bitcoins. Notably, 2,000 BTC from the Silk Road haul were
transferred to a Coinbase wallet, while the remainder were
relocated to a wallet identified by Arkham as belonging to the
government. Related Reading: Bitcoin Traders No Longer Extremely
Greedy: Rebound Signal? This pattern indicates a systematic
approach by the US government to handling seized digital assets,
focusing on consolidation before any potential future actions. As
the crypto market observed these developments, the price of Bitcoin
has remained stable, hovering above $66,000. The significant amount
of funds involved and the government’s handling of such assets
continue to be a point of interest for both investors and observers
within the crypto space. Contrary to common belief, it’s important
to note that the US govt normally doesn’t sell Bitcoin or Ether at
the open market. “The Silk Road US GOV coins FUD is literally just
FUD. The government doesn’t slam market sell on public orderbooks.
If it’s getting sold it either already or will be sold
OTC/auction,” crypto analyst Byzantine General noted two days ago.
At press time, BTC traded at $66,311. Featured image created with
DALL·E, chart from TradingView.com
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