Author: Vince Quill, CoinTelegraph; Translated by: Baishui, Jinse Finance
Arkham Intelligence’s on-chain data shows that the U.S. government sent 3,940 bitcoins to the Coinbase Prime wallet on June 26, 2024.
According to Arkham Intelligence, the transaction took place at 17:00:41 UTC and involved Bitcoin seized from convicted drug dealer Banmeet Singh earlier this year.
Transaction data for 3,940 bitcoins. Source: Arkham Intelligence
Banmeet Singh Case
In 2019, Singh was arrested by British authorities in London on suspicion of drug trafficking and was eventually extradited to the United States in 2023.
The Justice Department alleges that from 2012 to 2017, Singh operated a drug trafficking network that included distributors in Maryland, New York, North Dakota, Washington, Ohio, North Carolina and Florida.
As part of his sentence, Singh was forced to hand over more than 8,100 bitcoins to the U.S. The Drug Enforcement Administration (DEA) said it was the largest cryptocurrency seizure ever made by the three-letter agency, worth about $150 million at the time.
Singh was also sentenced to five years in prison in April 2024, but was given credit for time served and has reportedly been released by U.S. authorities. Singh plans to return to his native India immediately upon his release, The Columbus Express reported.
There are widespread concerns about government sell-offs
There have been reports in recent weeks that the German government is selling off Bitcoin, worth approximately $2.76 billion as of this writing, with market participants concerned that government sales could affect the Bitcoin market.
The most recent of these transactions occurred on June 26, 2024 at 09:27:57 UTC, with an output of 345 bitcoins being sent to a wallet labeled “Flow Traders.”
The U.S. government also holds a significant amount of Bitcoin acquired through asset seizure and confiscation. Data from Arkham shows that as of this writing, the U.S. government currently owns approximately 214,000 Bitcoins, valued at $13 billion, making the U.S. government the largest state holder of the decentralized currency in the Arkham Intel database.
Selling pressure from Mt. Gox also raised investor concerns about a drop in Bitcoin prices, as the former exchange began selling 140,000 Bitcoins to compensate parties injured in the infamous Mt. Gox collapse in 2014. However, trading balance is at a six-year low, acting as a price stabilizer and offsetting these selling pressures.
