According to the source, on-chain investigator ZachXBT claimed the US government likely hacked or reclaimed about 127,000 BTC from vulnerable wallets identified two years ago, source: ZachXBT social media statement. The claim has not been supported by any cited announcement from the U.S. Department of Justice or U.S. Marshals Service, indicating no official confirmation was provided in the statement, source: ZachXBT social media statement. For trading, if accurate, large government-held BTC has historically introduced supply overhang risk around auction or disposition events that can impact spot liquidity, funding, and basis, source: U.S. Marshals Service auction records. Traders should monitor public on-chain records for movements in government-labeled wallets and track DOJ/USMS notices for custody or auction timelines to manage headline and gap risk, source: public blockchain records and U.S. DOJ/U.S. Marshals Service public notices.

According to @zachxbt, the U.S. government says it has custody of roughly 127,000 BTC valued near $14 billion tied to seized wallets. According to @zachxbt, those wallet addresses had been highlighted about two years ago in a Milky Sad report for vulnerable private keys. According to the U.S. Marshals Service, seized Bitcoin has historically been liquidated via public auctions, creating episodic supply that can reach the market. According to the U.S. Department of Justice disclosures in prior cases such as the Silk Road BTC seizures, sales are often executed in tranches rather than all at once, which can affect market liquidity and volatility. According to @zachxbt, the listed addresses provide clear on-chain points to watch, so any movement from these wallets could be a leading indicator for BTC price risk.