US Government Moves $7.5M in Seized Altcoins Amid Crypto Market Decline
Arkham onchain data shows the US government transferred $7.5 million in seized altcoins during the recent market sell-off. Over 24 hours, authorities moved $300,000 in NEXO, $3 million in WETH and $4.2 million in TRX. NEXO and TRX were seized two years ago in Alameda Research investigations, while WETH originated from Bitfinex hacker seizures between 2022 and 2024. These transfers represent a tiny fraction of the government’s massive $28.5 billion crypto portfolio. Major holdings include 326,588 BTC (~$27.82 billion), 64,731 ETH (~$179 million), USDT ($351.4 million) and WBTC ($63.7 million).
Neutral
These onchain transfers represent internal reallocations rather than liquidations. At $7.5 million, the moved assets are negligible against the US government’s $28.5 billion crypto portfolio. Similar minor shifts in seized crypto holdings historically had no meaningful effect on market prices or trader sentiment. Therefore, this development is unlikely to sway short-term volatility or long-term trends in either direction.