On June 26, the U.S. government transferred 3,940 Bitcoin, valued at approximately $122 million, to a Coinbase Prime wallet, as revealed by on-chain data from Arkham Intelligence. These Bitcoins were seized from Banmeet Singh, a convicted drug trafficker, during his January 2024 trial. Singh was arrested in 2019 and extradited to the U.S. in 2023, where he was found guilty of running a narcotics smuggling network from 2012 to 2017.
The seized assets were part of a larger forfeiture, with Singh surrendering over 8,100 Bitcoin, valued at around $150 million at the time. This transfer has raised concerns among market participants about potential sell-offs impacting Bitcoin's price, especially following similar actions by the German government and the Mt. Gox bankruptcy estate.
The U.S. government holds a significant amount of Bitcoin from seizures, totaling approximately 214,000 BTC, making it the largest state holder of the cryptocurrency. The market remains wary of the effects of these large transfers on Bitcoin's price stability.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.