K33: U.S. Government's 17,733 BTC Transfers Likely Custody-Related, Not Sales

K33 Research reported that U.S. government-linked wallets transferred approximately 17,733 BTC to Coinbase Prime in early October, including 12,267 BTC tied to the Bitfinex hack. Labeled government holdings fell from 324,527 BTC to 306,795 BTC. Including suspected but unlabeled government wallets, total transfers may have reached 21,500 BTC.

K33 said most transfers likely involved custody arrangements rather than sales, as Coinbase Prime serves as custodian for the U.S. Marshals Service and the Bitfinex assets remain subject to a claims process. However, roughly 1,200 BTC linked to the FTX and HashFlare cases could potentially be sold to fund cash compensation for victims. — link