By: Eva Baxter
The US government has transferred 3,940 Bitcoin, approximately worth $240 million, to Coinbase on June 26, according to Arkham Intelligence data. This movement has sparked speculation about a potential sell-off. These Bitcoins were seized from drug trafficker Banmeet Singh and are currently part of the government’s holding worth roughly $13.4 billion.
The Bitcoins were moved from the US government’s wallet to Coinbase Prime, the institutional trading service of Coinbase. As per the latest data, the US government holds approximately 213,546 Bitcoin, valued at around $12.97 billion as of June 26. This sum represents roughly 1% of Bitcoin's total supply, positioning the US government as one of the major Bitcoin whales globally.
The US has previously moved significant quantities of Bitcoin, notably transferring 1,999 BTC to Coinbase in April and selling 9,861 BTC in March for $215 million. Historical data indicates that the government frequently sells BTC when prices are low, a trend that has been exemplified on various occasions across 2023.
This recent transfer follows the conclusion of the DOJ’s case against Banmeet Singh, who was arrested in London in 2019, extradited to the US in 2023, and sentenced to five years in prison in April 2024. Singh pleaded guilty to charges of selling controlled substances on the dark web and conspiracy to commit money laundering. The seized Bitcoin, initially valued at $150 million, is part of a larger haul. Indian authorities also arrested Singh in May 2024, seizing 268.22 BTC from a residence he shared with his brother. It's reported that the Singhs accumulated roughly 8088 Bitcoin from their illegal activities.