U.S. government makes surprising crypto transfer amid market crash

The United States government has quietly transferred a tiny amount of a long-troubled token, and on-chain sleuths immediately noticed.

On Nov. 20, blockchain analytics firm Arkham said the “US Government just moved $1.56 of SRM to a new wallet,” adding that officials “have made 3 separate crypto-asset movements today.”

SRM is the native token of Serum, a Solana-based decentralized exchange that became deeply entangled in the collapse of FTX and Alameda Research.

Large chunks of SRM linked to those estates were later seized by U.S. authorities and are now tracked on-chain as part of the broader FTX bankruptcy and enforcement process.

Arkham’s dashboard shows the movement came from a wallet labeled “U.S. Government: FTX Alameda Seized Funds (0x9cd)” to a fresh address holding 193 SRM — worth roughly $1.56 at current prices. SRM now trades near fractions of a cent after falling more than 99% from its 2021 peak, according to market data.

What could $1 test transaction mean

It could be a test transaction because of a few signs:

Moving just $1.56 in a near-dead token like SRM is economically meaningless, but it’s perfect for checking that a wallet, script or signing setup is working without risking real value.
Agencies (or their custodians) often send “dust” amounts to new addresses or service wallets to confirm they can receive, track and later move funds before transferring larger balances.

Why the $1.56 transfer is surprising

The move stands out for two reasons.

The U.S. government rarely moves seized crypto unless it is preparing for a sale, custody migration, or internal audit. Even tiny “dust” transfers are uncommon, which is why on-chain analysts pay attention the moment they appear.

The timing comes as President Donald Trump has repeatedly said the government should not sell its Bitcoin holdings and instead consider building a “strategic Bitcoin reserve.”

US government now holds nearly $30B in crypto, on-chain data shows

The U.S. government is sitting on roughly $29.7 billion in digital assets, according to Arkham Intelligence data tracking more than 600 labeled wallets linked to federal seizures.

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Most of the portfolio comes from high-profile enforcement actions — including the FTX/Alameda bankruptcy estate and long-running Silk Road cases — rather than any direct investment activity by the government.

Bitcoin dominates federal crypto holdings

Arkham data shows the U.S. holds 326,588 BTC, worth about $28.9 billion, making Bitcoin by far its largest on-chain position. The bulk of these coins originated from criminal forfeitures and have historically been auctioned or transferred for restitution.

The government also holds sizable amounts of stablecoins and cash-equivalent assets, including roughly 351 million USDT, 13.6 million BUSD, 13.5 million aUSDC, 11.6 million USDC, and 8.7 million DAI.

Beyond Bitcoin and stablecoins, the U.S. wallets tracked by Arkham contain:

64,731 ETH
751 WBTC
40,294 BNB + 22,175 WBNB
15.1 million TRX

Smaller positions include UNI, LINK, AAVE, RNDR, SHIB, BAND, FTT, NEXO and dozens of long-tail assets seized over years of enforcement activity.

The government also appears to have around $13.5 million in interest-bearing aUSDC supplied on Aave V2, consistent with seized funds that were moved into custodial or yield-generating addresses during bankruptcy administration.

Crypto markets slide again as Bitcoin, ETH and majors extend weekly losses

The transfer comes as crypto market continued to bleed on Wednesday, with nearly every major asset flashing red despite a brief overnight stabilization.

According to CoinGecko, the global crypto market cap fell to $3.12 trillion, down 4.5% in 24 hours, as Bitcoin, Ethereum, XRP and Solana all posted fresh declines. Market sentiment remains fragile after BTC’s drop below $90,000 earlier this week triggered heavy liquidations and widespread deleveraging.

Bitcoin (BTC) traded around $89,176, down 4.1%, extending its weekly slide to nearly 12%. Ether (ETH) fell 7.4%, slipping to $2,913, while XRP dropped more than 9% to hover near $2.03.

Other large caps also sank:

BNB: down 5.7%
Solana (SOL): down 6.8%
Dogecoin (DOGE): down nearly 8%
Cardano (ADA): down 7.3%
Shiba Inu (SHIB): down 7.3%

Macro pressure is adding to the slump. The U.S. Bureau of Labor Statistics confirmed this week that it will not release the full October jobs report, injecting uncertainty into rate-cut expectations and shaking risk assets across equities and crypto.