US Government Moves $1.9 Million of Seized Alameda Altcoins

BeInCrypto2026/05/27 20:30

By:BeInCrypto

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The US government moved roughly $1.9 million in altcoins seized from Alameda Research to Coinbase Prime on Wednesday. On-chain tracker Arkham Intelligence flagged the transfer. The batch covered five tokens from wallets the Department of Justice seized in 2023. The source accounts sit at Binance, and the move has revived familiar speculation about an eventual government sale. Is the US Government Selling? A wallet labeled by Arkham as the US Government sent about $1.89 million in tokens to a Coinbase Prime deposit address. The batch covered Render (RNDR), Uniswap (UNI), The Sandbox (SAND), Mask Network (MASK), and Axie Infinity (AXS). The US Government just moved $1.9 Million of Alameda funds.The USG seized $13M of Alamedas assets from Binance over 3 years ago. They just moved $1.89M of RNDR, UNI, SAND, MASK and AXS to Coinbase Prime.Are they about to sell the seized funds? pic.twitter.com/vHzgeZKybu Arkham (@arkham) May 27, 2026 Most of the dollar value sat in RNDR and UNI. Both tokens trade with market caps near $1.14 billion and $2.08 billion, respectively, according to BeInCrypto data. SAND, MASK, and AXS are smaller positions worth a few hundred thousand dollars apiece. Coinbase Prime is the exchanges institutional arm. Hedge funds, asset managers, and government agencies use it for custody and structured sales. Past USG transfers there have preceded both custody changes and outright liquidations, including an earlier Bitfinex bitcoin Coinbase transfer. A Familiar Pattern From the 2023 Forfeiture The seized stash traces back to January 2023. The Department of Justice filed civil forfeiture actions against three Alameda accounts on Binance and Binance.US. Those accounts held over $300 million at the time. The action sat inside the wider FTX collapse case. That case has since produced more than $11 billion in court-ordered forfeitures. The transfer fits a pattern from the same wallet. In late 2024, the federal addresses converted seized Aragon (ANT) tokens into ether. That swap ended two years of dormancy, an Alameda earlier ANT move Arkham flagged at the time. It also recalls an earlier FTX wallet shuffle of about $33 million in ETH, BUSD, and smaller tokens. How Markets Read the Move Most early reactions on X treated the transfer as routine asset management rather than an imminent sell signal. At $1.9 million, the batch is a sliver of the agencys overall crypto position. Relax, its pocket change for the US gov. They probably just rebalancing their bags, one user stated. Arkhams public US Government entity page lists 610 wallet addresses holding a combined $27 billion as of early May 2026. Of that, 328,361 BTC, worth roughly $26.6 billion, dominates the portfolio, with ether, stablecoins, and wrapped tokens trailing far behind. The DOJs Asset Forfeiture Program tends to liquidate non-core altcoins ahead of bitcoin. The agency treats BTC as a longer-hold reserve and moves it in larger, structured batches. A Coinbase Prime altcoin policy shift last year also reshaped which tokens institutional desks can custody. That leaves Arkhams question unanswered. Are they about to sell the seized funds? Arkham posed. Follow us on Xto get the latest news as it happens

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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1. Technology stocks fell sharply as investor interest shifted toward energy and selected defensive assets. From October 10 to 16, the Nasdaq 100 declined 5.49% and the S&P 500 fell 1.95%, while the Dow gained 0.67% and WTI crude rose 10.41%. BTC, ETH, and SOL declined 1.27%, 2.65%, and 4.44%, respectively. This week's technology earnings will be an important test of whether revenue growth, margins, and cash flow can justify current valuations. Better-than-expected results could help stabilize markets in the near term. 2. Crypto continues to see pockets of strong activity, but a broad-based altcoin season has yet to materialize. CoinMarketCap's (CMC) Altcoin Season Index stood at 54 as of the October 18 UTC daily observation, below the altcoin-season threshold of 75, while BTC dominance rose to 60.08%. Our proxy leverage ratio fluctuated between 4.00 and 4.07 during the week, showing no sustained increase and suggesting limited appetite for additional leverage. Meanwhile, as major exchanges expand access to traditional financial assets, the recent sell-off in AI-related equities could attract short-term speculative capital away from crypto. Such capital rotation could make it more difficult for a new altcoin season to take hold. 3. Papertrade's loss-to-mine model has generated significant interest across the crypto community. The protocol combines high-leverage derivatives trading with zero slippage and a mechanism that rewards trading losses with PAPER tokens. Across the eight complete UTC days from October 10 to 17, cumulative reported revenue reached approximately $56.08 million, including $51.90 million distributed to token holders. With growing participation from key opinion leaders (KOLs), Papertrade has reportedly ranked among the top three platforms by profitability in the broader market recently. Assets to watch: BTC, ETH, SOL, ARB, OP, SKHYNIX, SKHY, META, TSLA, LRCX, and SPCX. Key research priorities this week: Cash flow performance in technology earnings; the relative discount and holding costs of the two SK Hynix contracts; and U.S. initial jobless claims and PMI data. Weekly market data cover the period through October 16, while research information was verified through October 18. Observation periods are specified separately for each chart.

Bitget•2026/10/19 06:51