Arkham says US government not moving Bitcoin; labeling issues continue
Similar rumors emerged in April due to incorrect community wallet labels.
Arkham Intelligence said that it has not observed funds moving from wallets connected to the U.S. government in a series of tweets on May 10.
In a now-protected account, Twitter user beetle (@1kbeetlejuice) suggested that “[U.S. government] Bitcoin wallets are on the move” based on Arkham data.
Arkham refuted the rumor as it spread on social media, writing:
“Don’t see anything on our end.”
The issue seems to have emerged from community labels. Arkham explained that users can manually add labels to wallet addresses and edit data collections called Entities.
Arkham said that such manual changes “do not reflect associations” made by Arkham itself. It explained that it has marked just seven Bitcoin wallets as associated with Silk Road — the darknet market from which the U.S. has seized certain crypto addresses.
Regarding the wallets it has officially tagged, Arkham wrote:
“There have been no outgoing Bitcoin transactions from these wallets today.”
A similar incident occurred in late April when self-styled crypto news wire DB (@tier10k) suggested that government crypto funds were in transit based on similar data.
Arkham Intelligence has shown it is not directly responsible for incorrect labels. However, the platform’s approach to labeling is clearly an issue due to the fact that community labels cannot be readily distinguished from official labels.