As revealed by the on-chain transactions tracker, Arkham Intelligence, the United States government has transferred over $220,000 worth of Ethereum (ETH), the world’s second-largest cryptocurrency, to a wallet address on the renowned crypto exchange, Coinbase.
Notably, such transfers in the past have signaled a move to sell or convert the cryptocurrency to fiat. Thus, the latest U.S. government transactions have raised concerns about a potential drop in the price of ETH in the days to come when the administration finally sells off the crypto.
Over $220,000 to Coinbase
According to Arkham, the administration did not complete the transaction immediately. It began with a test transaction of 0.00394 ETH, valued at approximately $10, to a Coinbase Prime account. Forty minutes later, it transferred 86.564 ETH, worth $219,450, to the same Coinbase Prime wallet address.
Notably, a Coinbase Prime deposit address serves as a means for large crypto holders to sell assets with minimal or no market disruption. Although the move may seem small, it could be a sign of broader, unseen sales activity by the government.
The tracker also revealed that the transferred crypto was seized from Chase Senecal, also known as Horror, who perpetrated crypto scams and was caught by the authorities in 2022. Senecal was primarily focused on Non-Fungible Token (NFT) scams and generated profits that the government subsequently seized.
Meanwhile, the transferred cryptocurrency is currently held in Coinbase Prime, awaiting the next action. Due to blockchain technology, transactions are public, allowing traders and market enthusiasts to closely observe and determine the next line of action and its potential impact on the cryptocurrency market.
U.S. Government Promise Crypto Reserve
During President Donald Trump’s campaign, he outlined several steps he would take to ensure the U.S. stabilizes its economy, which includes establishing a strategic reserve of bitcoin (BTC), the world’s leading cryptocurrency. He also promised that his administration would never sell off any bitcoins.
Meanwhile, following his inauguration, he has taken several pro-crypto steps, including sacking the former U.S. Securities and Exchange Commission (SEC) Chairman, Gary Gensler. The new SEC administration has also taken steps to enable users to enter the cryptocurrency market easily.
