U.S. Government Transfers Seized 3,940 BTC Worth $240M to Coinbase
The United States government transferred 3,940 Bitcoin, worth approximately $240 million at current prices, to a Coinbase Prime wallet on June 26, 2024, as revealed by Arkham Intelligence. The transaction involved Bitcoin seized from convicted drug trafficker Banmeet Singh earlier this year.
Singh was arrested by British authorities in London on drug distribution charges in 2019, and extradited to the United States in 2023. As part of his sentencing, Singh was ordered to forfeit over 8,100 Bitcoin to U.S. authorities, a sum valued at approximately $150 million at the time. This seizure, characterized by the U.S. Drug Enforcement Agency (DEA) as the largest ever cryptocurrency confiscation by the agency, marked a significant moment in the enforcement of digital asset regulations.
The United States government is a substantial holder of Bitcoin, acquired through various seizures and asset forfeitures. Arkham Intelligence data indicates that the U.S. government currently holds approximately 214,000 Bitcoin, valued at $13 billion, making it the largest state holder of the cryptocurrency in the Arkham Intel database.
The government's handling of seized Bitcoin raised fears that large sell-offs could impact Bitcoin prices. These concerns have been amplified by recent actions from the German government, which has been liquidating its Bitcoin holdings, valued at roughly $2.76 billion. Furthermore, the potential impending sell-off from the Mt. Gox bankruptcy estate, which is in the process of liquidating 140,000 Bitcoin to reimburse creditors, has also sparked fears amongst market participants.