US Govt Moves $90M In Bitcoin, ETH From Estonian Scammers

In the early US hours, Arkham Intelligence reported that the United States government had transferred over $90 million worth of Bitcoin and Ethereum, previously seized from two Estonian nationals involved in a vast cryptocurrency fraud and money laundering scheme. This move captured the attention of the cryptocurrency community, just days after the transfer of approximately $2 billion in Bitcoin related to the infamous Silk Road marketplace.

Arkham Intel, utilizing its advanced tracking technology, noted that just two hours ago, the US government executed multiple transactions involving the seized digital assets. These included the transfer of 0.69 BTC, worth approximately $45.750, and another 374 BTC, valued at around $24.80 million, to a newly identified Bitcoin address (3GoRwyQvAJhX3conyuq355JiBD9FyfXAQe).

How To Get Free Crypto  

Additionally, 218.5 BTC, worth $14.49 million, were also moved to the same address, along with 4.567K ETH, equating to $15.21 million. Just minutes prior to press time,  another 0.0001 BTC and 0.5 BTC were moved to another new address (3LNW8R3AfDQgVCB9sQPwChyG47ktSjh3f3).

US Govt Bitcoin Ethereum | Source: Arkham Intel

Both the Bitcoin and Ethereum addresses are new and previously unknown to Arkham, suggesting a strategic consolidation rather than an immediate liquidation of assets.

The seized funds originate from Sergei Potapenko and Ivan Turõgin, two Estonians arrested in their home country in October 2022 following an 18-count indictment by a grand jury in the Western District of Washington.

The duo was implicated in orchestrating a $575 million cryptocurrency fraud through their ventures, HashFlare, a cryptocurrency mining service, and Polybius Bank, a virtual currency bank that never existed nor returned promised dividends to investors. Their elaborate scheme not only involved fraudulent equipment rental contracts but also utilized shell companies for laundering the proceeds to acquire luxury real estate and vehicles.

Coinbase Banner  

In September last year, the Estonian government approved the extradition of Potapenko and Turõgin to the United States. Estonian Prime Minister Kaja Kallas revealed at that time that the decision had been made at the government level.

Today’s transactions by the US government follow a precedent set by the movement of Silk Road’s bitcoins. Notably, 2,000 BTC from the Silk Road haul were transferred to a Coinbase wallet, while the remainder were relocated to a wallet identified by Arkham as belonging to the government.

This pattern indicates a systematic approach by the US government to handling seized digital assets, focusing on consolidation before any potential future actions.

As the crypto market observed these developments, the price of Bitcoin has remained stable, hovering above $66,000. The significant amount of funds involved and the government’s handling of such assets continue to be a point of interest for both investors and observers within the crypto space.

FreeBitcoin Banner  

Contrary to common belief, it’s important to note that the US govt normally doesn’t sell Bitcoin or Ether at the open market. “The Silk Road US GOV coins FUD is literally just FUD. The government doesn’t slam market sell on public orderbooks. If it’s getting sold it either already or will be sold OTC/auction,” crypto analyst Byzantine General noted two days ago.

At press time, BTC traded at $66,311.

BTC price, 4-hour chart | Source: BTCUSD on

Featured image created with DALL·E, chart from

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Go to Source
Author: Jake Simmons

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.