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Blockchain intelligence firm Arkham first identified the movement, tracing it to wallets connected to the Potapenko and Turogin case, linked to the former HashFlare operators.
Tracking the Government’s Bitcoin Transfers
Arkham’s data shows that the source wallets belong to Bitcoin seized in connection with the Potapenko and Turogin fraud case.
The two transactions together totaled 667 BTC, valued at roughly $75 million at the time of transfer. The funds were not sent to any known exchange deposit addresses but rather consolidated into a new cold wallet, which appears to remain under government custody.
This transaction adds to a growing list of Bitcoin movements by U.S. authorities, who routinely manage large digital asset seizures.
 
Each movement sparks market speculation about liquidation schedules and the government’s long-term intentions toward its crypto holdings.
An alternative hypothesis, though less substantiated, suggests that the U.S. government might be consolidating Bitcoin as part of a long-term reserve strategy.
This idea stems from the fact that the recent transfer went to a new cold wallet rather than directly to exchange-linked addresses.
Some analysts argue that with billions in Bitcoin already under U.S. control from prior seizures, maintaining part of these holdings could serve as a strategic hedge or future reserve asset.
The U.S. government is one of the largest institutional holders of Bitcoin due to a series of law enforcement seizures.
Market Implications and Observations
Although $75 million is relatively minor compared with total U.S. Bitcoin holdings, such transfers can influence market psychology. Traders often interpret large government movements as indicators of potential selling pressure, even when no exchange deposits follow.
From a policy perspective, renewed debate may also emerge around whether governments should retain seized crypto as strategic reserves rather than sell them outright.
The ongoing transparency of blockchain records ensures that future wallet movements will continue to be scrutinized in real time. The U.S. government’s $75 million Bitcoin transfer, recorded in October 2025, is verifiable and traceable on the blockchain.
The move was executed in two steps and remains in a cold wallet, with no subsequent exchange transactions detected.
While the transaction may precede a future auction, the absence of public filings or exchange flows leaves open the possibility of continued custody.
For now, the most likely scenario remains standard repositioning ahead of a future sale, consistent with past government handling of seized assets.
Still, as the federal crypto portfolio grows, these movements underscore the government’s evolving role as an unexpected player in the global Bitcoin ecosystem.