US Government Sends 3940 Bitcoins to Coinbase Exchange

Arkham Intelligence’s on-chain data shows that on June 26, 2024, the US government sent 3,940 bitcoins to the Coinbase Prime wallet. According to Arkham Intelligence, the transaction occurred at 17:00:41 UTC and involved bitcoins seized from convicted drug dealer Banmeet Singh earlier this year.
The Singh case dates back to 2019 when Singh was arrested by UK authorities in London for drug trafficking and eventually extradited to the United States in 2023. The US Department of Justice claimed that from 2012 to 2017, Singh operated a drug smuggling network that included distributors in Maryland, New York, North Dakota, Washington, Ohio, North Carolina, and Florida. As part of his sentencing, Singh was forced to surrender over 8,100 bitcoins to the US. Drug Enforcement Administration (DEA) referred to it as the largest cryptocurrency seizure in the history of the three-letter agency, valued at approximately $150 million at the time. Singh was also sentenced to 5 years in prison in April 2024 but was reportedly released by US authorities due to time served and is planning to return to his native India.
There are concerns among the public about the government’s sell-off. Recent reports indicated that the German government is selling bitcoins worth around $2.76 billion, leading to market participants worrying about its potential impact on the bitcoin market. The latest transactions occurred on June 26, 2024, at 09:27:57 UTC when 345 bitcoins were sent to a wallet labeled “Flow Traders”. Additionally, the US government holds a significant amount of bitcoins obtained through asset seizures. Arkham’s data shows that at the time of writing, the US government currently owns approximately 214,000 bitcoins worth $13 billion, making it the largest national holder of decentralized currency in Arkham’s database. The selling pressure from Mt. Gox has also raised concerns among investors about a potential drop in bitcoin prices, as the former exchange began selling 140,000 bitcoins to compensate for the parties affected by the infamous Mt. Gox incident in 2014. However, the trading balance is at a six-year low, helping to stabilize prices and offset the selling pressure.