The US government sends 3,940 Bitcoin to the Coinbase exchange
The United States government sent 3,940 bitcoins to the Coinbase Prime Wallet on June 26, 2024, on-chain data from Arkham Intelligence revealed.
According to Arkham Intelligence, the transaction took place at 17:00:41 UTC and involved Bitcoin (BTC) seized from convicted drug dealer Banmeet Singh earlier this year.
The case of Banmeet Singh
In the year In 2019, Singh was arrested by British authorities in London on drug trafficking charges and eventually extradited to the United States in 2023.
The United States Department of Justice From 2012 to 2017, Singh allegedly operated a narcotics smuggling network that included distributors in Maryland, New York, North Dakota, Washington state, Ohio, North Carolina and Florida.
Related: A 4-Week Correction for Bitcoin? Matt Gox, German government steps up selling pressure.
As part of the judgment against him, Singh was forced to surrender more than 8,100 Bitcoin, worth around $150 million at that time, as the United States Drug Enforcement Agency (DEA) characterized as the largest cryptocurrency seizure ever carried out. Three letter agency.
Singh was sentenced to 5 years in prison in April 2024 but was reportedly released by US authorities with credit for time served. According to The Columbus Dispatch, Singh had plans to return to his native India after his release.
Widespread threat of government selling
Fears of a government sale affecting the Bitcoin market gripped market participants in recent weeks after the German government reported that it was offloading approximately $2.76 billion worth of Bitcoin as of this writing.
The most recent of these transactions occurred on June 26, 2024, at 09:27:57 UTC, when an output of 345 bitcoins was sent to a wallet marked “flowing traders”.
The United States government holds a large amount of Bitcoin obtained through seizures and property destruction. Data from Arkham shows that at the time of writing, the US government holds approximately 214,000 bitcoins valued at $13 billion, making the US government the largest government holder of the decentralized currency in the Arkham Intel database.
The pressure from the Cent Gox bankruptcy estate has left investors worried about a fall in Bitcoin's price, as the former currency's 140,000 Bitcoin downgrade began in 2014 with Mt. Gox failure to restore affected parties. However, exchange rates are at 6-year lows, acting as a price-stabilizing counterweight to these selling pressures.
Magazine: This is your brain on crypto: Substance abuse grows among crypto traders.
