On June 26, the US government sent 3,940 bitcoin to Coinbase Prime, Coinbase's institutional trading platform. Blockchain analysis company Arkham Intelligence marked the transaction.
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ONLY IN: US government sends 3,940 twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin valued at $241 million for Coinbase pic.twitter.com/m14HpdeJ0s
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1806024644341752313?ref_src=twsrc%5Etfw”>June 26, 2024
The transferred bitcoin was originally seized from convicted drug trafficker Banmeet Singh in early 2024. Singh was arrested in London in 2019 on distribution charges and extradited to the United States in 2023.
As part of his sentencing, Singh handed over more than 8,100 bitcoin to US authorities, worth around $150 million at the time.
While the recent transfer of nearly 4,000 bitcoin is substantial, it represents only a fraction of the government's total bitcoin holdings. Data shows that the US government currently holds around 214,000 bitcoin worth over $13 billion, making it the largest national bitcoin holder globally.
Much of the government's bitcoin comes from seizures related to the closed Silk Road dark web market. The infamous 2016 Bitfinex hack also contributed to the stash.
The transfer to Coinbase indicates that the government could be looking to sell some of its long-dormant bitcoin reserves. This adds to fears that there will be a price impact similar to that of the recent German government sell-off.
However, the amount moved so far is relatively minor compared to daily bitcoin trading volumes. The US government still holds the vast majority of the seized bitcoin, which is now worth billions more due to its meteoric price rise.
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