On June 26, 2024, the U.S. government transferred 3,940 Bitcoin to a Coinbase Prime wallet, as reported by Arkham Intelligence. This significant move involves Bitcoin seized from convicted drug trafficker Banmeet Singh.
Banmeet Singh, arrested in London in 2019 for drug distribution, was extradited to the U.S. in 2023. From 2012 to 2017, Singh operated a narcotics network across several states, including Maryland, New York, and Florida. As part of his sentencing, Singh forfeited over 8,100 Bitcoin, valued at approximately $150 million, marking the largest cryptocurrency seizure by the U.S. Drug Enforcement Agency (DEA).
Sentenced to five years in prison in April 2024, Singh was credited for time served and has since been released. Reports suggest he plans to return to India.
Recent government Bitcoin sell-offs have raised market concerns. Germany’s recent unloading of Bitcoin worth about $2.76 billion has already impacted the market. The latest U.S. transaction was recorded at 17:00:41 UTC on June 26, 2024, with the government still holding around 214,000 Bitcoin, valued at $13 billion, making it the largest state holder according to Arkham Intel.
Investor anxiety is further fueled by the Mt. Gox bankruptcy estate preparing to sell 140,000 Bitcoin to reimburse victims of the 2014 collapse. Despite these pressures, exchange balances remain at six-year lows, offering some market stability.
The U.S. government’s transfer of nearly 4,000 Bitcoin to Coinbase has stirred fears of a potential market impact. This move, linked to the high-profile case of Banmeet Singh, highlights ongoing concerns over large-scale Bitcoin sell-offs by governments and bankruptcy estates. As the market watches closely, the balance between selling pressures and exchange reserves will be crucial in determining Bitcoin’s price stability.
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