The U.S. government recently withdrew $5.4 million in AAVE after holding the funds for 8 months.

The funds were originally seized in relation to the Bitfinex hacker, as identified by Arkham Intelligence.

The exact nature of the transactions remains partially unclear, with the withdrawn funds paid out in USDC.

Community speculation suggests that the U.S. government may have locked the funds on Aave, earning interest as a liquidity provider on the DeFi lending platform.

This could explain the prolonged holding period of the funds by the U.S. government.

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