The US Government Transfers Seized Bitcoins to Coinbase Prime
On June 26, 2024, the United States government transferred 3,940 bitcoins from a Bitcoin wallet to Coinbase Prime, according to data from Arkham Intelligence. The transaction, which took place in the afternoon, involved bitcoins that were seized from drug trafficker Banmeet Singh.
The Case of Banmeet Singh
Banmeet Singh was arrested in 2019 by British authorities in London on drug distribution charges and was extradited to the United States in 2023. The US Department of Justice claimed that Singh operated a narcotics smuggling network from 2012 to 2017, with distributors in several US states, including Maryland, New York, North Dakota, Washington State, Ohio, North Carolina, and Florida.
As part of his sentencing, Singh was ordered to forfeit over 8,100 bitcoins to the US authorities, valued at approximately $150 million at the time. This seizure was deemed by the US Drug Enforcement Agency (DEA) as the largest cryptocurrency seizure ever conducted by the agency.
Singh was sentenced to 5 years in prison in April 2024 but received credit for time served and has reportedly been released by US authorities. According to The Columbus Dispatch, Singh plans to return to his home country of India after his release.
Fears of Government Bitcoin Sell-Off
Fears of a government-led sell-off of Bitcoin have been weighing on market participants in recent weeks. Reports have indicated that the German government is selling its bitcoins, which were valued at approximately $2.76 billion at the time of writing. The latest of these transactions took place on June 26, 2024, with a transfer of 345 bitcoins to a wallet labeled ‘Flow Traders’.
The US government also holds significant amounts of bitcoins acquired through asset seizures and confiscations. Arkham’s data shows that the US government currently possesses around 214,000 bitcoins, valued at $13 billion, making it the largest state holder of Bitcoin in Arkham Intel’s database.
Investor concerns about a potential decrease in the price of Bitcoin are further fueled by the selling pressure from the bankruptcy estate of Mt. Gox, which has begun distributing 140,000 bitcoins to repay creditors.
