US Government Moves Bitcoin Again in FTX-Related Forfeiture Effort

The US government has moved a small amount of Bitcoin seized from Alameda Research accounts on Binance.US, according to blockchain analytics firm Arkham. The transfer, which occurred on August 26, is part of a larger forfeiture effort stemming from the collapse of FTX.

In May, Arkham identified roughly $1.9 million of seized Alameda altcoins being transferred to Coinbase Prime. Earlier in July, government-linked wallets moved more than $288 million of seized Bitcoin and Ether to Coinbase Prime in transactions involving assets tied to several criminal cases.

The seized holdings include over $102 million in Bitcoin and wrapped Bitcoin at the time. The Department of Justice said Judge Lewis Kaplan authorized the government to use recovered funds to compensate victims of Alameda Research's crimes, with Bankman-Fried sentenced to 25 years in prison and ordered to forfeit over $11 billion.