The U.S. government has transferred a $377 portion of Bitcoin seized from Alameda Research's Binance.US accounts three years ago, according to reports from Arkham Intelligence. The blockchain analytics firm reported the transaction on August 27, describing the amount as small and tracing the Bitcoin to Alameda accounts on Binance.US that U.S. authorities seized three years earlier. Arkham specifically highlighted the movement, noting that the wallet "FTX Alameda Seized Funds" sent 0.0048 BTC to another wallet. The firm did not describe the transaction as a sale or provide evidence that the government had begun liquidating the remaining Bitcoin tied to Alameda, leaving the transaction's purpose unconfirmed. The latest transfer represents the fourth movement of Alameda-linked assets in recent months, following previous transfers in May, June, and August.
Despite Alameda-related selling pressure, institutional demand has strengthened significantly, with BlackRock-linked ETF wallets accumulating 3,620 BTC worth $282 million from Coinbase Prime. Spot Bitcoin ETFs recorded $232 million in daily net inflows on August 26, marking the eighth straight day of inflows and pushing total monthly ETF flows above $3 billion. BlackRock led with $200 million in net inflows, while the Coinbase Premium Gap turned positive for the first time since May, according to CryptoQuant, indicating stronger buying pressure on Coinbase relative to Binance. This institutional support has reinforced Bitcoin's resilience, with the cryptocurrency now testing the $78,000 level following a powerful rebound of nearly 23% from last week's lows. Bitcoin is currently trading near $78,825 after declining 0.32% but had risen 13% on the daily chart before the recent pullback.
Bitcoin's momentum indicators support a potential breakout above current levels. The Aroon Oscillator rose to 78, indicating that buyers control the prevailing trend, while the Trend Strength Index maintains its upward trajectory, further supporting possible trend continuation. If demand holds, Bitcoin could break from consolidation and reclaim $81,000, with the next target potentially near $84,000, where the market broke down in January. The cooldown following Bitcoin's rejection at $81,265 before falling to a low of $77,601 has offered institutional investors another opportunity to accumulate, with exchange netflow remaining negative for five consecutive days, signaling sustained net withdrawals and reduced tradable supply.
The status of government-controlled Bitcoin has received increased attention since President Donald Trump established the Strategic Bitcoin Reserve through an executive order in March 2025. Under the federal framework, Bitcoin that has been finally forfeited to the government can be transferred into the reserve and held as a government asset, with Bitcoin deposited into the Strategic Bitcoin Reserve subject to a no-sale policy under the executive order. A June examination found that the federal government held an estimated 328,372 BTC at the time, although the figure included assets spread across government agencies and subject to different legal statuses. White House digital asset adviser Patrick Witt described progress on the legal and custody structure as a "breakthrough," while Treasury Secretary Scott Bessent told senators that the administration remained committed to the reserve while officials worked through rules for this new asset class.
The transferred assets remain connected to the ongoing FTX recovery process. Alameda Research operated as the trading firm associated with FTX before the exchange collapsed in November 2022. Federal prosecutors said FTX founder Sam Bankman-Fried used customer deposits to finance Alameda's operations, investments and loan repayments. A New York jury convicted Bankman-Fried in November 2023 on seven counts, including wire fraud, securities fraud conspiracy, commodities fraud conspiracy, and money laundering conspiracy. In March 2024, U.S. District Judge Lewis Kaplan sentenced Bankman-Fried to 25 years in prison, with the sentence including forfeiture of more than $11 billion, while prosecutors placed FTX customer losses at more than $8 billion. In June 2026, the U.S. Court of Appeals for the Second Circuit upheld Bankman-Fried's conviction and sentence, rejecting arguments that restrictions had prevented him from presenting a complete defense. Separate bankruptcy proceedings continue to determine how recovered FTX and Alameda assets are distributed to creditors.
