According to data from blockchain intelligence firm Arkham, a wallet associated with the US government moved 3,375 ETH. The moved Ethereum was valued at approximately $11.75 million and sent to an unknown address at 16:34 UTC+8.
This large transfer comes at a time when the crypto market is waiting for the potential approval of spot Ethereum ETF applications. The timing of this move has sparked speculation about potential connections between the transfer and the regulatory decision.
The Estonian Connection
Adding intrigue to the story, the source wallet is known to hold seized funds from Estonian crypto entrepreneurs Potapenko and Turogin. Journalist Wu Blockchain has highlighted the connection to an international case.
According to Arkham, U.S. Government: 0x05…e049 transferred 3.375k ETH, worth about $11.75 million, to an unknown address: 0x5a…1871 at 16:34 UTC+8 today. The address holds the seized funds of Estonian crypto entrepreneurs Potapenko and Turogin. Previously, another U.S.…
— Wu Blockchain (@WuBlockchain) July 1, 2024
In a related development, another US government address previously used for holding seized funds transferred 11.84 BTC to a separate wallet. These movements suggest a possible reorganization of government-held crypto assets.
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The government’s wallet has been inactive for over 2 years. The transfer of funds comes at a time when the SEC has yet to reveal its decision regarding spot ETH ETFs.
The SEC completely flipped its stance on the BTC ETF this year after multiple rejections. The commission also closed its investigation into Ethereum recently and stated that Ethereum is not a security.
That was definitely a monumental moment for Ethereum. It has also sparked the thought that ETH ETFs will be approved soon. However, the recent movement of ETH also raises questions about whether the SEC will reject and further delay the ETH ETF decision.
The movement also comes at a time when the price of ETH has recovered slightly after several days of bloodshed.
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