John E. Deaton, a legal expert and cryptocurrency advocate, has harshly criticized x.com/JohnEDeaton1/status/1806267950048923665″ target=”_blank” rel=”noopener nofollow”>criticized the US government for its recent large-scale bitcoin transfers to San Francisco-based crypto exchange Coinbase. Deaton, known for his outspoken views on regulatory issues in the crypto space, has expressed concerns about the implications of these transfers, questioning the transparency and motivations behind the government’s actions.
US Government bitcoin Transfers Under Fire
The criticism comes in the wake of the US government transferring a significant portion of bitcoin to Coinbase, one of the world's largest cryptocurrency exchanges. Thousands of Bitcoins are reportedly involved in these transactions, which were linked to assets recovered by law enforcement during several operations against cryptocurrency-related crimes.
Data From Arkham, a blockchain company revealed that the US government transferred over 3,940 btc worth $241 million to Coinbase. Originally stolen from drug dealer Banmeet Singh, these Bitcoins were confiscated during the trial in January 2024. This remarkable transaction comes amid a global cryptocurrency market crash, which has caught the attention of the general public.
In response to whale transactions, John Deaton He stated that these types of actions by the United States government make people tired of considering them nonsense. He then criticized Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), and US Senator Elizabeth Warren, noting that Gensler continues to work under the Warren administration, while joining the anti-cryptocurrency army that she had pledged to create following her re-election announcement.
Deaton has criticized the US government for using Coinbase for its bitcoin transfers despite the exchange being accused of engaging in illegal trading activities by the US SEC and Gensler.
He stated:
Gensler, as chairman of the SECGov, has declared Coinbase's business illegal. However, the US government is using that illegal business to sell bitcoins to the American public. You can't make this up.
The legal expert's criticism suggests an inconsistent attitude of the US government, implying that despite ongoing legal battles against coin baseBy using the platform for such transactions, they are indirectly supported. Moreover, the action raises serious concerns about the government's regulatory procedures and implies that it damages the SEC's reputation.
Coinbase hits back at US SEC
John Deaton’s thoughts coincide with Coinbase’s recent lawsuit against the US SEC and the Federal Deposit Insurance Corporation (FDIC), signifying a dramatic escalation of the fight for regulatory clarification within the cryptocurrency space.
Paul Grewal, Chief Legal Officer at Coinbase x.com/iampaulgrewal/status/1806299309836746909″ target=”_blank” rel=”noopener nofollow”>fixed that the exchange sued the regulatory watchdog under the Freedom of Information Act (FOIA) over requests made more than a year ago, seeking crucial information to which Coinbase and the general public are entitled.
The platform requires documents from the SECOND As for ethereum, and whether or not the digital asset is considered a security. Meanwhile, for the FDIC, Coinbase is seeking letters regarding pause notices the corporation claimed to have sent to financial institutions regarding cryptocurrency-related activities.
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