Originally published on: June 26, 2024
On June 26, the United States government made a significant move by sending a whopping 3,940 Bitcoin to a Coinbase Prime wallet, as revealed by onchain data from Arkham Intelligence. This transaction, which took place at 5:00 pm UTC, involved Bitcoin seized from convicted drug trafficker Banmeet Singh earlier in 2024.
Singh, who was arrested in 2019 by British authorities on drug distribution charges, ran a narcotics smuggling network from 2012 to 2017. He was extradited to the United States in 2023 on a multitude of charges spanning several states.
To settle the judgment against him, Singh was required to surrender over 8,100 Bitcoin worth approximately $150 million at the time. This marked the largest cryptocurrency seizure ever conducted by the U.S. Drug Enforcement Agency (DEA).
Despite being sentenced to five years in prison in April 2024, Singh has reportedly been released by U.S. authorities and has plans to return to his native India. This development has sparked concerns among investors about potential government sell-offs impacting the Bitcoin market, amidst reports of the German government selling off their Bitcoin holdings as well.
In addition to the recent transaction, the United States government currently holds around 214,000 Bitcoin valued at roughly $13 billion, making it the largest state holder of the decentralized currency according to Arkham Intel’s database.
Market participants are also keeping a close eye on the Mt. Gox bankruptcy estate, as it begins the process of unloading 140,000 Bitcoin to reimburse parties affected by the 2014 Mt. Gox collapse. Despite these selling pressures, exchange balances are at six-year lows, providing a stabilizing factor for Bitcoin prices.
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