In crypto today, the US Justice Department announced it would forfeit 127.271 Bitcoins worth $14.4 billion in connection with a fraud investigation. Meanwhile, US spot Bitcoin and Ether ETFs started the week with more than $750 million in outflows after Friday’s crash, and Bhutan migrated its national ID system from Polygon to Ethereum.
US government could increase crypto reserve by $14 billion as part of forfeiture cases
The US Federal Court has unveiled a criminal complaint involving an extensive fraud scheme which could lead to the prosecution of government officials. increasing its national Bitcoin reserves 14 billion dollars.
The US Justice Department issued an alert on Tuesday. said The forfeiture complaint was filed against 127.271 Bitcoin (BTC), valued at $14.4 billion when the article appeared. This Bitcoin was connected to an arrest of Chen Zhi. Chen Zhi is the chairman and founder of a Cambodian company who is accused in organising a terrorist attack. “pig butchering” crypto investment schemes.
On the day the indictment came out, the Office of Foreign Assets Control of the US Department of the Treasury sanctioned Zhi’s company, the Prince Holding Group and its affiliated companies.
The complaint states that the US seeks forfeiture if Zhi is convicted in the US District Court for Eastern District of New York on charges of money laundering and wire fraud. Justice Department stated that the Bitcoin was “presently in the custody of the US government” Do not forget the criminal proceedings.
The US Strategic Reserve would be able to add a significant amount of Bitcoin if Zhi is convicted. This will mark the first time since the reserve’s establishment that the US has added cryptocurrency. US President Donald Trump set up national Bitcoin and crypto reserves via executive order in March.
US Bitcoin Ether ETFs lost $755M after crypto-market crash
Find Bitcoin and Ether Exchange Traded Funds (ETFs) in the United States saw combined outflows More than $755 million was liquidated on Monday, following the record-breaking crypto transactions over the weekend.
BitcoinBTCAccording to SoSoValue, ETFs saw a net outflow amounting to $326.52 millions. Fidelity’s Wise Origin Bitcoin Fund, (FBTC), saw the highest outflow with $93,28 million. Grayscale’s Bitcoin Trust, (GBTC), recorded a $145.3 million outflow.
The daily withdrawals for other notable funds such as Ark 21Shares Bitcoin ETF and Bitwise Bitcoin ETF were respectively $21.12m and $115.64m. BlackRock’s iShares Bitcoin Trust, however, saw $60.36 inflows.
In the time since writing this article, cumulative net inflows have remained steady at $62.44 Billion. This is equivalent to 6.81% or $157.18 Billion of Bitcoin’s current market value. In total, funds saw $2.71 billion in inflows Last week.
EtherETHETFs saw outflows totaling $428.52 Million on Monday. BlackRock’s iShares Ethereum Trust, (ETHA), saw the biggest daily outflow at $310.13 millions, followed by Grayscale Ethereum Trust, (ETHE) with $20.99 million and Fidelity Ethereum Fund, (FETH), at $19.12million.
Bhutan moves its National ID System to Ethereum
Bhutan, a nation in South Asia. migrating its self-sovereign ID system Polygon has introduced Ethereum, which allows the city’s nearly 800,000 citizens to validate their identity and gain access to government services.
The migration of resident credentials should be finished by the end of the first quarter 2026. according Aya M. Miyaguchi, President of the Ethereum Foundation
“It’s deeply inspiring to see a nation commit to empowering its citizens with self-sovereign identity,” Miyaguchi posted X said Monday that Ethereum was a first in the world.
Integration of a blockchain solution in a national ID system by a government has been hailed as an exciting crypto application due to the immutability and transparency features. This is especially true when zero knowledge proofs are used.
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Source: cointelegraph.com
