Seized $1.9 Billion Bitcoin Hits Coinbase Prime: What’s the US Planning Next?

These Bitcoins were originally confiscated during a 2021 probe into James Zhong. In a 2022 statement, the US Justice Department disclosed the seizure of over 50,000 BTC from Zhong.

Since then, the government has been moving parts of this stash between wallets. As of the latest update, the total value of Bitcoin under government control stands at approximately $18 billion.

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In July 2024, the US Marshals Service announced a collaboration with Coinbase Prime. This partnership is designed to facilitate the secure storage of tokens associated with asset forfeitures.

Since the intentions behind the recent transfer remain uncertain, it is not yet clear whether the authorities want to liquidate or trade Bitcoin as part of their financial strategy.

That said, US lawmakers, like Senator Cynthia Lummis, have floated the idea of creating a “strategic Bitcoin reserve” for the country, which could tie into these actions.

As the US government strengthens its grip on crypto assets, regulatory actions continue to make headlines. Recently, the SEC hit a new milestone, setting records with $8.2 billion in fines tied to Terraform Labs. What triggered this huge penalty? Read the full story.