The US government has ignited a selloff scare for AAVE after initiating its first transaction for the token in 8 months. According to data insights from Arkham Intelligence, the US Government transaction features a total of $5.4 million.
Is the US Government Earning With Aave?
Per the data shared, the funds were originally secured from the Bitfinex Hacker as marked by Arkham Intelligence. However, the exact transactions remains partly unclear considering the funds are paid out in USDC. The value of this stablecoins comes in at exactly 5.445 million.
According to comments from the community, one explanation for this is that the US government locked up the funds on Aave. Based on this, it started earning interest as a liquidity provider on the Decentralized Finance (DeFi) lending platform.
Aave is not the only digital currency the US government holds in its portfolio. Notably, the potential means the government plans to utilize these funds is rarely shared with the public. This has further birthed the broader uncertaint surrounding the movement of the over $5.4 million worth of token.
In a new update, it appears that the Government’s wallet address is compromised. Arkham Intelligence confirmed that about $20 million has now left the wallet domiciled in USDC, USDT, aUSDC and ETH respectively.
𝗨𝗣𝗗𝗔𝗧𝗘: 𝗨𝗦 𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗹𝗶𝗻𝗸𝗲𝗱 𝗮𝗱𝗱𝗿𝗲𝘀𝘀 𝗮𝗽𝗽𝗲𝗮𝗿𝘀 𝘁𝗼 𝗵𝗮𝘃𝗲 𝗯𝗲𝗲𝗻 𝗰𝗼𝗺𝗽𝗿𝗼𝗺𝗶𝘀𝗲𝗱 𝗳𝗼𝗿 $𝟮𝟬𝗠.
$20M in USDC, USDT, aUSDC and ETH has been suspiciously moved from a USG-linked address 0xc9E6E51C7dA9FF1198fdC5b3369EfeDA9b19C34c to… pic.twitter.com/UXn1atE1Wx
— Arkham (@ArkhamIntel) October 24, 2024
The government is one of the largest holders of digital currencies like Bitcoin. With more than 50,000 BTC seized from the Silk Road founder Ross Ulbricht, the government’s dedicated wallets are well watched. While the government has made some selloffs in the past, it remains unknown what it plan to do with the Bitfinex hacker wallet’s funds.
Per the Arkham Intelligence insight, the US government still have ETH, TRUMP and USDC besides the AAVE.
Governments and Bitcoin
Just as investing ideologies differ among investors in the broader digital currency ecosystem, so also do they differ between governments. As reported earlier by Coingape, Bhutan ranks the 4th largest Bitcoin holder by country. As one of the top nations with no seizure history, the country trails after El Salvador which legalized BTC in September 2021.
Despite the positive sentiment around nations owning crypto, Germany sold off thousands of its Bitcoin stash earlier this year. The German Bitcoin selloff impacted the crypto market in unusual ways at the time.
To correct this, Bitcoin Bull, Samson Mow had a chat with German parliament members last week. With this conversation, there are growing speculations that Germany might adopt BTC strategy to make up for the selloff.
Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: