After the US Sent 240 Million Worth of Silk RoadRelated BTC to Coinbase Bitcoin Plunges

The drug dealer Banmeet Singh was seized with about 4,000 bitcoins in the trial in January 2024.
On Wednesday, Bitcoin (BTC) fell to $60,000, after a U.S. government-tagged wallet transferred about $240 million worth of confiscated BTC to a Coinbase Prime address, sparking concerns among traders that these digital assets could be sold.
According to a social media post by Arkham Intelligence, about 3,940 bitcoins originally seized from a Silk Road supplier were transferred from the wallet. The post stated, “These BTC were initially seized from the drug dealer Banmeet Singh and confiscated in the trial in January 2024.”
The government’s last action was on April 2, when it seized about 50,000 bitcoins related to the Silk Road website at the end of 2022, putting pressure on the digital market with the bitcoins worth $2 billion. The government’s last confirmed sale was in March 2023, when it sold 9,861 bitcoins for $216 million.
Earlier this week, Bitcoin attempted a slight rebound from the Mt. Gox-related plunge, but fell back below $61,000 as the news came out. Subsequently, Bitcoin fell 1% in the past 24 hours, dropping to $61,100, while the more widely followed CoinDesk 20 index fell by about the same amount. Ethereum (ETH) also fell by 1.6% on the day due to this news.