On June 26, the United States government transferred 3,940 Bitcoin to a Coinbase Prime wallet, according to Arkham Intelligence.
The Bitcoin, originally seized from convicted drug trafficker Banmeet Singh, was part of the largest cryptocurrency seizure ever carried out by the DEA.
Banmeet Singh, arrested in London in 2019, was extradited to the United States in 2023.
From 2012 to 2017, Singh operated a narcotics network across several U.S. states, including Maryland, New York, and Florida.
In his January 2024 trial, he was forced to forfeit over 8,100 Bitcoin, then valued at $150 million, to the U.S. government.
The transfer to Coinbase has stirred fears of a potential sell-off, potentially impacting Bitcoin’s market value.
This comes amid similar concerns over the German government’s recent Bitcoin liquidation, amounting to $2.76 billion.
Currently, the U.S. government holds around 214,000 Bitcoin, valued at approximately $13 billion, making it the largest state holder of Bitcoin according to Arkham Intelligence.
Singh, who received a five-year prison sentence in April 2024, has already been released with credit for time served and plans to return to India.
Meanwhile, the Bitcoin market remains on edge as large-scale transactions by governments and the Mt. Gox estate could influence price stability in the near future.
